Multiple Currencies and Hedging
Bibliographic Data
| ID | 9722303 |
|---|---|
| Authors | Udo Broll, Удо Бролл (University of Bonn), Kit Pong Wong (0000-0002-2669-1626, University of Hong Kong), ITZHAK ZILCHA (0000-0003-1208-0901, Tel Aviv University) |
| Year | 1999 |
| Volume | 66 |
| Issue | 264 |
| Pages | 421-432 |
| Publication date | 1999-11-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Economica (JOURNAL) |
| Journal identifiers | ISSN: 0013-0427 • E-ISSN: 1468-0335 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/1468-0335.00181 |
| OpenAlex | W2138323341 |
| Language | EN |
| Citations received | 1 |
| References cited | 3 |
This paper presents a model of a competitive exporting firm confronting multiple currency risks. Future markets do not exist for the firm’s own currency, but do exist between currencies of two countries to which the firm exports its entire output. We provide analytical insight into optimal cross‐hedging and its implications on production and on trade flows. We show that the unbiasedness of the cross‐currency futures market does not imply non‐random profits. Furthermore, the availability of cross‐hedging opportunities has no effects on production but does have effects on exports
Currency · Economics · Financial economics · Futures contract · Microeconomics · Monetary economics · Production (economics) · Economic Sanctions and International Relations · Market Dynamics and Volatility · Risk Management in Financial Firms
| Citations per year | 0.05 |
|---|---|
| Citation span | 2004 - 2004 (1) |
| Highly cited | No |