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A General Empirical Model of Hedging

Author

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  • Moawia Alghalith

    (The University of the West Indies, St. Augustine, Trinidad)

  • Ricardo Lalloob

    (The University of the West Indies, St. Augustine, Trinidad)

Abstract

In this paper, we treat output as a decision variable. Moreover, we employ a general form of basis risk. Furthermore, we relax the statistical-independence assumption between the spot price and basis risk.

Suggested Citation

  • Moawia Alghalith & Ricardo Lalloob, 2012. "A General Empirical Model of Hedging," JRFM, MDPI, vol. 5(1), pages 1-19, December.
    • Handle: RePEc:gam:jjrfmx:v:5:y:2012:i:1:p:1-19:d:28407
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    References listed on IDEAS

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