, I show that it causes a reduction in the supply of FX derivatives (FXD) and results in a substantial decline in exports … for the firms that were heavily relying on FXD hedging. I offer a mechanism in which imbalances in hedging demand, banks …

derivatives portfolio for pricing or for accounting purposes, and it has been a matter of debate and controversy. This paper is … bilateral replication pricing using shares and credit default swaps, we attribute the P&L of a derivatives trade into the …

We examine whether firms’ political hedging activities are effective at mitigating political risk. Focusing on the risk … induced by partisan politics, we measure political hedging as the degree to which firms’ political connections are balanced … across Republican and Democratic candidates. We find that greater political hedging is associated with reduced stock return …

We investigate the optimal hedging strategy for a firm using options, where the role of production and basis risk are … portfolio is primarily affected by the amount of cash spent on the hedging. Also, we decompose the effect of production and … basis risk showing that the former affects hedging effectiveness while the latter drives the choice of the optimal contract …

of Bhattacharya (1979) by including the possibility of hedging the future cash flow. We find that the higher the hedging …

reject the hypothesis that financial hedging decreases risk exposure. One possibility is that the decreased volatility in jet … effective. However, operational hedging, defined by two proxies for fleet diversity, reduces exposure significantly. A one …. Financial and operational hedging strategies serve aviation managers as a tool to counteract high and volatile fuel prices …

stage I subsume various models for optimal hedging under one general co-integrated model. In a worked example three models …