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Part I: Introducing the Programme and its Contents -- 1. Setting the Scene and Introduction -- Part II: Theoretical Underpinnings: Structural Components Of Uncertainty -- 2. Locating Uncertainty along the Risk Spectrum -- 3. Problem Status -- 4. Time-Based Criteria -- 5. The Evidence Base -- 6....
Persistent link: https://www.econbiz.de/10013349759
The inaccuracy of the Black-Scholes formula arises from two aspects: the formula is for European options while most real option contracts are American; the formula is based on the assumption that underlying asset prices follow a lognormal distribution while in the real world asset prices cannot...
Persistent link: https://www.econbiz.de/10009443000
It is well documented that ‘‘unanticipated’’ information contained in United States Department of Agriculture (USDA) crop reports induces large price reactions in corn and soybean markets. Thus, a natural question that arises from this literature is: To what extent are futures hedges...
Persistent link: https://www.econbiz.de/10009443784
to be followed by knowledgeabout factors which interfere in the marketing mechanisms: the basis behavior and thebasis …
Persistent link: https://www.econbiz.de/10009443813
strategies. Though VaR can be utilized by decision makers for numerous management aspects, in the cases analyzed in this study … the primary reason for hedging, it is not the only aspect that management must consider. Numerous other aspects enter into …
Persistent link: https://www.econbiz.de/10009443974
The purpose of this paper is to provide a specific test of Boucher, Carter et al.(2008) framework on risk rationing. The data were collected through a survey of 730farm households in Shaanxi province conducted in November 2010. We comparefactor associated with risk rationed, quantity rationed...
Persistent link: https://www.econbiz.de/10009444362
We theoretically examine a farmer’s coverage demand with area and individual insurance plans as either separate or integrated options. The individual and area losses are assumed to be imperfectly and positively correlated. With actuarially fair rates, the farmer will fully insure with the...
Persistent link: https://www.econbiz.de/10009444568
The typical model of retail pricing for produce products assumes retailers set price equal to the farm price plus a certain markup. However, observations from scanner data indicate a large degree of price dispersion in the grocery retailing market. In addition to markup pricing behavior, we...
Persistent link: https://www.econbiz.de/10009444824
Basis risk has been cited as a primary concern for implementing weather hedges. This studyinvestigates several dimensions of weather basis risk for the U.S. corn market at variouslevels of aggregation. The results suggest that while the degree of geographic basis risk maybe significant in some...
Persistent link: https://www.econbiz.de/10009445047
management tool for farmers, processors, and other market participants is generally neither understood nor readily accepted ….This paper is directed toward professionals, economist and non-economist alike, with an interest in the management of import and … markets. It focuses on futures markets while recognizing that they are but one of a number of available risk management tools. …
Persistent link: https://www.econbiz.de/10009445379