Futures and Options
Futures and Options
Collin Carter
ARE139: Lecture 14, Fall 2015
1 hour 24 minutes Posted Nov 12, 2015 at 5:02 pm.
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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.