market exists for hedging purposes. We show that imposing the background risk, be it additive or multiplicative, on the firm … has no effect on the separation theorem. The full-hedging theorem, however, holds if the background risk is independent of …This paper examines the behavior of the competitive firm under correlated price and background risk when a futures …

This paper uses a dynamic optimization model to estimate the welfare gains of hedging against commodity price risk for … commodity-exporting countries. The introduction of hedging instruments such as futures and options enhances domestic welfare …

risk pricing, the availability of reliable trading systems, and the development of hedging instruments are fundamental for …

markets are still facing a number of challenges including prevalent short-term indexation, investors’ risk aversion to long …

and monetary easing, combined with the fiscal stimulus already in the pipeline and the return of risk appetite in …

India’s financial system compares favorably internationally, but rising credit risk and liquidity pressures are …

, supporting capital inflows and helping market participants to price, unbundle and transfer risk. There are tight regulations on … asset allocations by insurance and pension funds to prevent excessive risk taking. The development of derivatives markets in …. Theiroverdependence on bank credit as a source of funding could be reduced and their management of seasonal risk could be improved through …