This article develops a Hedging Algebraic Model (HAM) for equity index portfolios with stock index futures as an … models used to date for the calculation of the optimal hedging ratio do not include the effect of discrete dividend payouts … presented here as an alternative approach to econometrics models yields superior results, both in hedging efficacy and in the …

that cash-flow hedging and capital investment by firms affects their future stock return distribution. Hedging by firms … investment counteracts these effects. Using hand-collected hedging data from energy-related firms, we find empirical results … consistent with the theoretical predictions. The pull-to-normality effect of hedging is stronger among firms with small size …

The financial crisis has raised concerns throughout the industry on the possibility that hedging credit valuation … products break down. So, we provide an estimation of the basis risk that arises when hedging credit portfolios with different …

, the implied adjustments in capital charges could be reduced by hedging a credit derivative portfolio with a contrary …

Customizing the optimal derivative written on an “instrument” risk to hedge an exogenous pecuniary risk is only …

moving, on home values, and on labor income in each region. The hedging demands offset each other when the household intends …

moving, on home values, and on labor income in each region. The hedging demands offset each other when the household intends …