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We examine the impact of dynamic hedging demand of German option and discount certificate markets on the … market, a structured financial product with a concave payoff profile, asking whether dynamic hedging by certificate issuers … induces negative return autocorrelation in stock markets. We find empirical evidence that the hedging demand of option issuers …
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costs (hedging costs) for firm values and exposure. Based on time series data of German DAX companies, DM/ dollar rates and …
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