stemming from abroad and derive the equilibrium demand for forward contracts. It turns out that risk averse agents will not buy … aforementioned literature obsolete. Using real world data for Germany we calibrate our model. We find that in equilibrium risk averse …

these instruments in the banking in- dustry which is heavily exposed to credit risk. However, while recent literature mainly …

commodities and biofuel helps commodity suppliers hedge their portfolios, and manage the risk and co-risk of their biofuel and … should be considered as viable futures products in financial portfolios for risk management. …

hedging the Value at Risk is zero and the bank chooses to over-hedge. … new ways to banks to manage credit risk. In this paper we use a simple microeconomic model to show how a credit option of … the put type can be used by a bank's risk-averse management to hedge against credit risk. We find that under optimal …

speculative hedging is. Analysing tax-sensitivity of the corporate hedge shows that a higher risk in the first place may reduce …Using a two-moment decision model this paper analyzes corporate hedging behavior in the presence of unified and … differential income taxation. We start with the well-known result that risk-taking may increase when income tax rates increase and …

uncertainty and hedging opportunities. Market transparency is modeled by means of the informational content of publicly observable …

: First we assume that hedging and output decisions are taken simultaneously. We show that hedging is just done for risk … output decisions. We show that hedging is used not only to manage the risk exposure but also as a strategic device …This paper studies a Cournot duopoly in international trade so that the firms are exposed to exchange rate risk. A …

exchange rate risk and hedging. Information is described in terms of market transparency, i.e., a publicly observable signal …

Instruments of risk mitigation play an important role in managing country risk within the foreign direct investment … (FDI) decision. Our study assesses country risk by state-dependent preferences and introduces futures contracts as a tool … of risk mitigation. We show that country risk assessments related to foreign direct investment do not matter if the …

. For example, the nature of monotonicity of the indifference curve depends on the underlying mean. Price hedging decisions … hedging decisions within the prospect theory. We illustrate our general considerations with a thoroughly worked out example. …