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| Jin, Hyun Joung; Koo, Won W.. |
| This study explores the role of hedging costs in offshore hedging to minimize the risks associated with fluctuations in commodity export prices and exchange rates in international grain trade. The study focuses on three areas: (1) the effects of hedging costs in both commodity and currency futures hedging, (2) the relationship between hedging cost and trade volume of a grain, and (3) a prescriptive hedging strategy for Japanese wheat importers in the commodity and currency futures markets. A demand system for futures hedging is presented and the effect of hedging cost on the model is analyzed. The model is applied to a representative wheat importer in Japan. Demand for futures is estimated under different levels of hedging costs in both commodity and... |
| Tipo: Working or Discussion Paper |
Palavras-chave: International grain trade; Risk management; Offshore futures hedging; Hedging cost; Marketing. |
| Ano: 2002 |
URL: http://purl.umn.edu/23592 |
