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Showing 1 to 2 of 2 for “"optimal hedging ratio"”.

  1. Three Essays on Futures Markets

    Essays two and three explore optimal hedging strategies within the mean-variance framework. In essay two, we examine the non-linear relationship between optimal hedge ratios and transaction fees under different market conditions (spot returns). In essay three, we extend the study by Working (1962) …

    uiuc Repository record for Three Essays on Futures Markets (opens in a new tab)

  2. Assessing out-of-sample hedging performance with commodity futures

    … of minimum-variance and unconditional hedging strategies in the corn futures market from 2002 to 2019. The out-of-sample performance is captured by new measures of hedging effectiveness that are fundamentally tied to basis and net price. The findings include that optimal hedge ratios …

    uiuc Repository record for Assessing out-of-sample hedging performance with commodity futures (opens in a new tab)