Feed price risk management for sheep production in Spain: a composite future cross-hedging strategy

2022 ◽  
Author(s):  
Ismael Pérez-Franco ◽  
Esteban Otto Thomasz ◽  
Gonzalo Rondinone ◽  
Agustín García-García
Keyword(s):  
Risk Management ◽  
Price Risk ◽  
Hedging Strategy ◽  
Cross Hedging ◽  
Sheep Production ◽  
Price Risk Management

Price risk management by using dynamic hedging based on advanced Black–Scholes model

2020 ◽  
Vol 07 (01) ◽  
pp. 2050011
Author(s):  
Peili Lu ◽  
Jiaqi Shen ◽  
Liheng Zhao ◽  
Haoyang Qin ◽  
Xunzhi Liu ◽  
...  
Keyword(s):  
Risk Management ◽  
Evaluation Method ◽  
Commodity Price ◽  
Price Risk ◽  
Dynamic Hedging ◽  
Hedging Strategy ◽  
Replication Method ◽  
Black Scholes Model ◽  
Black Scholes ◽  
Price Risk Management

Price Risk Management plays an important role in Commodity trading and corporate purchasing or Sales plan. Futures are used to hedge the price risk which is linear, while options are used for the nonlinear one. This paper proposes an evaluation method of dynamic hedging strategy for corporate hedging commodity price risk based on advanced Black–Scholes Model. By using the inverse replication method, we get the dynamic hedging strategy which uses futures to replicate options. Finally, we apply the dynamic hedging strategy for corporate purchases and sales to either lower purchase cost or maintain the sales price.

Hedging as a Method of Price Risk Management

2019 ◽  
Vol 8 (4) ◽  
Author(s):  
Lilia Mirgaziyanovna Yusupova ◽  
Irina Arkadevna Kodolova ◽  
Tatyana Viktorovna Nikonova ◽  
Bulat Talgatovich Yakupov
Keyword(s):  
Risk Management ◽  
Price Risk ◽  
Price Risk Management

Price risk management using forward contracts: the case of farmers in Pakistan

2018 ◽  
Vol 9 (3) ◽  
pp. 241 ◽  
Author(s):  
Shahab E. Saqib ◽  
John K.M. Kuwornu ◽  
Ubaid Ali ◽  
Sanaullah Panezai ◽  
Irfan Ahmad Rana
Keyword(s):  
Risk Management ◽  
Price Risk ◽  
Forward Contracts ◽  
Price Risk Management

scholarly journals Factors affecting the use of price risk management tools by large commercial maize producers in South Africa

2000 ◽  
Vol 3 (1) ◽  
pp. 75-96 ◽  
Author(s):  
A. Brown ◽  
G. F. Ortmann ◽  
M. A.G. Darroch
Keyword(s):  
Risk Management ◽  
Formal Education ◽  
Crop Insurance ◽  
Ordinary Least Squares ◽  
Price Risk ◽  
Least Squares Regression ◽  
Sources Of Information ◽  
Management Tools ◽  
Complementary Method ◽  
Price Risk Management

Ordinary Least Squares regression was used to examine what characteristics affect the use of maize price risk management tools by a sample of large commercial South African maize producers in 1998. The use of maize storage facilities, off-farm employment, formal crop insurance, length of formal education of operators and the proportion of farm turnover from maize, all positively influence producers' use of these tools. Crop insurance thus appeared to be a complementary method of risk management. In contrast to previous United States studies, operators' self-rated score of marketing management ability was negatively related to the use of price risk management tools. Maize marketing seminars and other sources of information on managing price risk would reduce adoption costs and encourage broader producer participation

Sociological Factors Affecting Agricultural Price Risk Management in Australia*

2010 ◽  
Vol 74 (4) ◽  
pp. 546-572
Author(s):  
Elizabeth Jackson ◽  
Mohammed Quaddus ◽  
Nazrul Islam ◽  
John Stanton
Keyword(s):  
Risk Management ◽  
Price Risk ◽  
Factors Affecting ◽  
Sociological Factors ◽  
Agricultural Price ◽  
Price Risk Management
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