on a specific commodity price. By extracting commodity price risk out of the bond, such an instrument insulates the bond … default risk from commodity price movements, allowing it to be marketed at a lower credit spread. The product is also designed …

-balance-sheet activities. This paper provides measures of leverage implicit in derivative contracts by decomposing the contracts into cash …

investigate the impact of index futures trading on the volatility of the spot market in China. Our three main findings are as … follows: (1) the launch of index futures does not decrease the volatility of the spot market; (2) there is a decrease in …

-run volatility in the spot market increases; Paudyal et al. (2005). Harris (1989) finds that increased volatility in the spot market …, listed on NSE for the period August 2005 to May 2008. Using Hoadley Options, volatility modeled by GARCH (1, 1) is estimated …. Considering both volume and volatility, mixed evidences are witnessed. Futures introduction has some stabilizing effect on large …

Many governments are heavily exposed to oil price risk, especially those dependent on revenue derived from oil … production. For these governments, dealing with large price movements is difficult and costly. Traditional approaches, such as … decade, and their range and depth could allow even substantial producers, and consumers, to hedge their oil price risk. Yet …