This paper analyses the optimal hedging decisions for risk-averse producers facing crop risk, assuming crop yield … derived. The individual crop risk is shown usually to contain a large systemic component. These new hedging instruments are …

This study investigates optimal production and hedging decisions for firms facing price risk that can be hedged with … vulnerable contracts, i.e., exposed to nonhedgeable endogenous counterparty credit risk. When vulnerable forward contracts are … the only hedging instruments available, the firm's optimal level of production is lower than without credit risk. Under …