This classic article, which was distributed by U.S. savings and loan regulators in the 1980s and 1990s, teaches the basics of hedging interest rate risks with futures, swaps and options. While the assets that are the focus are fixed rate mortgage backed securities, the general technique and...

This paper examines the allocational roles of futures markets and commodity options in multi-good and multi-period economies. In a continuous-time model with time-additive utilities and homogeneous beliefs, trading in "unconditional" futures contracts, the market portfolio and a riskless asset...

We present an asymmetric information model of hedging that has the intuition that hedging is undertaken by higher ability managers who wish to "lock-in" the higher profits that result from their higher ability. Thus, hedging is an attempt to improve the informativeness of the learning process by...