How much do firms hedge with derivatives?

Article Abstract:

The magnitude of risk exposure hedged by financial derivatives, which is used by 234 large non-financial corporations, is reported. The financial derivatives are studied for its economically important component of corporate risk management.

United States, Hedging (Finance)

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A study towards a unified approach to the joint estimation of objective and risk neutral measures for the purpose of options valuation

Article Abstract:

Research indicates that for estimating investment options a univariate approach is favoured by investors. The bivariate approach can be useful when cash market information enables investors to price long term.

Models, Stochastic analysis

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The basis risk of catastrophic-loss index securities

Article Abstract:

The effectiveness of catastrophic-loss index options in hedging hurricane losses for Florida insurers is analyzed, using a windstorm simulation model developed by Applied Insurance Research.

Florida, Stock options, Securities trading

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