This paper proposes a robust approach to hedging and pricing in the presence of market imperfections such as market … incompleteness and frictions. The generality of this framework allows us to conduct an in-depth theoretical analysis of hedging … proposed theoretical approach are illustrated with an application on hedging economic risk. …

which the risk management and hedging needs of investors may be effectively met through the derivative instruments. However …

availability of liquidity is a concern in hedging. Our paper extends the earlier literature, suggesting that an environment with a …

short term hedging in the spot market. I study the minimum variance hedge ratio and how it can be estimated in different … hedges. The empirical results indicate some gains from hedging with futures despite the lack of straight-forward arbitrage …

that it is a good strategy to use as a hedge, the futures whose maturity is closer to the hedging horizon. This is … particularly true for short-term hedging. …

The paper discusses the problem of hedging not perfectly replicable contingent claims by using a benchmark, the … pricing and hedging for an increasing number of not fully replicable benchmarked contingent claims. …

decomposition to the problem of hedging European and American style contingent claims in a setting of incomplete security markets. …