particular, the authors look at the extent to which farmers use weather derivatives to complement insurance. Unlike insurance …, weather derivatives mitigate risk associated with low intensity, high probability events and therefore offer the potential of … high in frequency but low in severity, to study the usage of weather derivatives compared to insurance and identify the …

.e., the separation result does not hold. Moreover, flexibility in production implies only partial hedging with an actuarially … fair futures price, i.e., the full-hedging result does not hold. …

The paper tests the hedging and structure-conduct-perfor Mance (S.C.P.) models in the context of Australian finance … and inconsistent with the hedging model. Finance company profits are positively related to market power and the degree of …

aggregate use of financial derivatives by Australian companies. Employing the same sample of firms, the current paper extends … derivatives. At a specific level, our results reveal the following. A firm is more likely to use foreign currency derivatives if … it is large and has more debt in its capital structure. Interest rate derivatives, on the other hand, are more likely to …

(hedging substitute proxy). The overall results indicate that Australian companies use derivatives with a view to enhancing the … to address two issues: the decision to use financial derivatives and the extent to which they are used. Logit analysis … constraints proxy) are important factors associated with the decision to use derivatives. These findings support the financial …

the expansion of financial derivatives. The purpose of this special issue on “Risk Management and Financial Derivatives … contributed significantly to the analysis of risk management, with an emphasis on financial derivatives, specifically conditional … indices: dynamic models and risk hedging, the probability of default in collateralized credit operations, risk premia in multi …

European (Rotterdam) spot show different long-run adjustments, arbitrage profitable opportunities and price risk hedging … indicates the importance of potentially hedging the spot prices of agricultural commodities with ethanol futures contracts …, which sends an important message that the ethanol futures market is capable of hedging price risk in agricultural commodity …