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author characterizes world wheat production for the period 2003-2013. The author gives an example that shows the volatility … of the wheat market (CBOT). The author explains why he uses quotations of forward contracts, and not in the spot market …. The author scrutinizes the quotations of CBOT wheat futures contracts in the paper. The author substantiates the need for …
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This paper is designed to assist individuals and organizations in understanding the role and risks of derivatives in two specific areas -- debt management and investing. The various risks associated with derivatives are discussed in this article. Similar to collateralized debt obligations (CDOs)...
Persistent link: https://www.econbiz.de/10011205842
The article presents the example of using relations between the price of wheat flour sold by the milling companies and … the price of wheat futures listed on the FOREX market to protect the companies from bakery sector against adverse price … movements of raw material – wheat flour. The paper aims to present a method which can help to reduce risk of changes wheat flour …
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In this article, we propose a new approach for pricing futures contracts more efficiently. We show that the coefficients of the pricing partial differential equation can be estimated directly from the data. We reduce the number of functions to be estimated as well as the computational cost....
Persistent link: https://www.econbiz.de/10008755175
This study examines the pricing behaviour of share price index futures contracts traded on the Australian market. Particularly, we investigate the relationship between futures prices and the no-arbitrage price predicted by the current spot prices. Consistent with similar studies of U.S. markets,...
Persistent link: https://www.econbiz.de/10010769575
The derivative instruments accounting plays an important role in the development of the financial instruments markets, commodity market and in the risk management process. Because, the close relationship between the methods of derivative instruments accounting and the derivative instruments in...
Persistent link: https://www.econbiz.de/10010727946
The objective of this paper is to demonstrate the effectiveness of risk management portfolio using futures contracts to achieve hedging. The risk can be minimized once measured, and the traditional tool of market risk management is hedging. The objective is to identify the optimum position to...
Persistent link: https://www.econbiz.de/10010857613