essential in analyzing optimal hedging and export decisions. When the spot exchange rate and the futures exchange rate are …

; hedging ; cointegrated VAR model …

domestic portfolio. We propose modeling the currency hedging strategy as a function of characteristics proxying for expected … hedging. Proxies for risk, such as volatility, skewness, beta on volatility, and equity sensitivity are irrelevant in our …

currency hedging strategies, for a series of 7 models,using Bayesian inference and decision analysis. The models differ in the … comparethe hedging decisions and financial returns and utilities as they result from the modellingassumptions and the attitudes …

, many investors consider implementing currency-hedging programs to reduce or eliminate the volatility that results from … foreign currency exposures. This paper examines the prospect of hedging currency risk, evaluating the different methods used … costs of hedging developed market and emerging market currency exposures.Meketa Investment Group recommends investors …

We consider an exporting firm facing FX risk. We show that FX options are not used for hedging, if there is no ex …-post production flexibility. Hence, in the standard setting of having no ex-post optionality, hedging with forwards is the best choice ….The value of FX options for hedging arises as soon as there are real options for the exporter like determination of the …

in banks' dollar hedging costs. For identification, we exploit regulatory end-of-quarter reporting that penalizes banks …