hedging the Value at Risk is zero and the bank chooses to over-hedge. …

Using a two-moment decision model this paper analyzes corporate hedging behavior in the presence of unified and …, therefore, the incentive for hedging reduces. We demonstrate that pure hedging is differently affected by taxation than … speculative hedging is. Analysing tax-sensitivity of the corporate hedge shows that a higher risk in the first place may reduce …

uncertainty and hedging opportunities. Market transparency is modeled by means of the informational content of publicly observable …

hedging opportunity is introduced by a forward market where the foreign currency can be traded on. We investigate two settings …: First we assume that hedging and output decisions are taken simultaneously. We show that hedging is just done for risk … managing reasons as it is not possible to use hedging strategically. In this setting the well-known separation result of the …

exchange rate risk and hedging. Information is described in terms of market transparency, i.e., a publicly observable signal …

/Estrin 2004) together with the fact that almost all (92 %) of the world's top 500 companies enter derivatives markets for hedging …

. For example, the nature of monotonicity of the indifference curve depends on the underlying mean. Price hedging decisions … hedging decisions within the prospect theory. We illustrate our general considerations with a thoroughly worked out example. …

liquidate the futures position. We show that preferences and expectations become important for optimumexport and hedging …

We investigate the pricing of basket credit derivatives and their hedging with single name credit default swaps (CDS … pure jump filtration, we present an extremely efficient approach to pricing and study explicit hedging strategies. …

This paper studies the impact of counter-party default risk of forward contracts on a firm's production and hedging …