Contrary to Battermann et al.'s (2000) claims, this paper shows that risk-averse exporters may produce less with fair commodity futures than with fair put options; moreover, they may prefer the latter instrument for hedging against its exchange rate risk.
Hau, A. (2005). A note on the preferred hedge instrument (HKIBS Working Paper Series 059-045). Retrieved from Lingnan University website: http://commons.ln.edu.hk/hkibswp/95