Article ID Journal Published Year Pages File Type
5083897 International Review of Economics & Finance 2012 8 Pages PDF
Abstract
► This paper examines the competitive firm with state-dependent background risk. ► The separation theorem holds. ► The full-hedging theorem holds only under restrictive conditions. ► We construct an example wherein options are included in the firm's hedge position.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
Production and futures hedging with state-dependent background risk
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