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

diversified mixed asset portfolios via different hedge tools. Several hedging strategies, using currency forwards and currency …

/Estrin 2004) together with the fact that almost all (92 %) of the world's top 500 companies enter derivatives markets for hedging …

Based upon the foundations of mean-variance decision-making theory, we demonstrate that a change in the risk situation … of an international enterprise open currency position does not inevitably require a corresponding hedging accommodation …. Given a new risk situation, whether a revision of the hedging-strategy is appropriate will depend upon the elasticity of …

production. Without any markets for hedging an increase in exchange rate risk lowers foreign investments and output. However …

We examine the impact of corporate currency hedging on economic stability by introducing hedging activity in a Mundell … size as well as hedging costs. The results indicate that, with an increasing fraction of hedged firms in an economy, the … magnitude of a crisis decreases and from a specific hedging level onwards currency crises are ruled out. In order to improve …

This paper examines the optimal production, export allocation and hedging decisions of a risk-averse international firm … each currency. Then, both production and export allocation are separable. Hedging with forward contracts depends on risk … exchange rate risk plus noise, there is a conflict between cross hedging and taking a basis risk. If, alternatively, the …

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

correlated to the foreign currency. By indirectly hedging its foreign exchange exposure the firm can increase its economic …