Gay, Gerald D.; Nam, Jouahn; Turac, Marian - In: Journal of Applied Corporate Finance 14 (2002) 4, pp. 82-93
This paper provides guidance on how corporations should choose the optimal mix of "linear" and "non-linear" derivatives. Linear derivatives are products such as futures, forwards, and swaps, whose payoffs vary in linear fashion with changes in the un-derlying asset price or reference rate....