Raju, Sudhakar S. - In: Journal of Emerging Market Finance 4 (2005) 1, pp. 27-41
This paper analyses methods to reduce the price risk of Ecuadorian oil exports through hedging in the oil futures market. I simulate ex ante cross hedges over the 1991–96 period and find that in every case, ex ante hedging would have been effective in reducing risk. I provide quantitative...