considers both the derivative's farm-specific risk reduction capacity and the individual farmer's risk acceptance. Applying it …Since the mid-nineties, agricultural economists discuss the suitability of "weather derivatives" as hedging instruments …, weather derivative markets for the agricultural sector are still in their infancy all-over the world. Some economists …

This paper studies the impact of counter-party default risk of forward contracts on a firm's production and hedging … decisions. Using a model of a risk-averse competitive firm under price uncertainty, it derives several fundamental results. If … expected profits from forward contracts are zero, the hedge ratio is surprisingly not affected by default risk under general …

für derivative Finanzinstrumente, ihre Bewertung und ihren Ausweis im Jahresabschluss schaffen wollten, zeigt der hier … Mittel zur Risikoabsicherung, das so genannte "Hedging". Fallbeispiele und zahlreiche Abbildungen veranschaulichen die z. T … Risikomanagement. …

This paper analyzes optimal hedging of a tradable risk (e.g. price risk or exchange rate risk) with forward contracts … noise, cross hedging and speculating on the real risk premium are conflicting objectives; the level of relative risk … in the presence of untradable inflation risk. Utility is defined over real wealth. Optimal forward positions are derived …

This paper examines the production, export and risk management decisions of a risk-averse competitive firm under … exchange rate risk. The firm is export flexible in allocating its output to either the domestic market or a foreign market …. Under fairly priced currency futures and options, full hedging with both instruments is optimal. Introducing fairly …

corporate hedging: equity value maximising strategies and strategies determined by managerial risk aversion. The first category …Finance theory does not provide a comprehensive framework for explaining risk management within the imperfect financial … environment in which firms operate. Corporate managers, however, rank risk management as one of their most important objectives …

additional delivery risk on hedgers. This paper derives the optimal production and futures hedging strategy for a risk …-averse competitive firm in the presence of delivery risk. We show that, depending on its relative valuation, the delivery option may … induce the firm to produce more than in the absence of delivery risk. If delivery risk is additively related to commodity …

currency hedging strategies, for a series of 7 models,using Bayesian inference and decision analysis. The models differ in the …Internationally operating firrns naturally face the decision whether or not to hedge the currencyrisk implied by … comparethe hedging decisions and financial returns and utilities as they result from the modellingassumptions and the attitudes …

, is the risk management of the embedded options by a tractable and realistic hedging strategy. The long maturity of life … explicitly taking into account ``model risk''. In this context, we show how to determine the contract parameters conservatively … and implement robust risk management strategies. This highlights the necessity of a careful choice of guarantees which are …

possible at time T if the initial capital is not sufficient to hedge xc. This introduces a new risk into the market and our … main aim is to minimize this shortfall risk by making use of results from bsde theory. …