ARE139: Lecture 14, Fall 2015

From Laurie Warren November 12, 2015

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Lecture 14: Carter introduces hedging with futures as a risk management strategy. He gives examples of long and short hedges in commodity markets are presented. Basis is defined as the difference between futures and cash prices and the implications of basis risk are discussed. Hedging is categorized as arbitrage, operational, or anticipatory.

Tags: futurespricingfinancial marketsstockshedgescommoditymarketscolin carteruc davis

Appears In: ARE139 FQ2015 Agriculture Business Agricultural and Resource Economics

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ARE139: Lecture 14, Fall 2015

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