We investigate analyst forecasts in a unique setting, the natural gas storage market, and study the contribution of analysts in facilitating price discovery in futures markets. Using a high‐frequency database of analyst storage forecasts, we show that the market appears to condition...

We provide a descriptive examination of the trading activities of one of the most important intermediaries in global financial markets—the OTC derivatives dealer. These dealers play a central role in the provision of derivative products and in the intermediation of market risks faced by...

We examine how corporations should choose their optimal mix of linear and nonlinear derivatives. We present a model in which a firm facing both quantity (output) and price (market) risk maximizes its expected profits when subjected to financial distress costs. The optimal hedging position...

Persistent underpricing in the Korean stock index futures market is documented and alternative explanations are examined. No‐arbitrage pricing bands are computed using alternative sets of transaction costs and short sale restrictions faced by different investor groups. We find that a...