essential in analyzing optimal hedging and export decisions. When the spot exchange rate and the futures exchange rate are …

achieved from the existence of risk sharing markets are the separationtheorem and the and full-hedging theorem. This note … examines the optimalproduction for exports and hedging decisions of a risk-averse rm facing bothhedgeable exchange rate risk … and non-hedgeable (background) risk. While theseparation property holds in this context, the full-hedging property does …

. Under fairly priced currency futures and options, full hedging with both instruments is optimal. Introducing fairly …

additional delivery risk on hedgers. This paper derives the optimal production and futures hedging strategy for a risk …