A note on the preferred hedge instrument

Authors

Arthur HAU

Document Type

Paper Series

Publication Date

6-2005

No.

059-045

Abstract

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.

Comments

HKIBS Working Paper Series 059-045

Recommended Citation

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