Broll, Udo; Welzel, Peter; Kit, Pong Wong - In: Contemporary economics 7 (2013) 2, pp. 17-20
This note studies the risk-management decisions of a risk-averse farmer. The farmer faces multiple sources of price … the farmer’s optimal commodity futures market position, i.e., a cross-hedge strategy, is actually an over-hedge, a full …-hedge, or an under-hedge strategy, depending on whether the two prices are strongly positively correlated, uncorrelated, or …