Oil Hedging Strategies Using Futures and Options: Applications for the State of Alaska

1987 ◽  
Author(s):  
M. Lindahl ◽  
E.S. Venkatesh
2021 ◽  
pp. 299-314
Author(s):  
Andrew C. A. Elliott

The board game backgammon illustrates that we can control the effects of risk by understanding chances, controlling our exposure to risk, and attending to the preparation of our responses. If we understand the risks we face in a financial context, hedging strategies can allow us to shape the overall risk by offsetting some or all of it, but this comes at a price. Financial futures and options are some of the tools that allow financial risks to be shaped in creative ways. Where risks are poorly understood, though, these financial engineering approaches may not always be effective, and have in the past led to financial difficulties.


2021 ◽  
Vol 3 ◽  
Author(s):  
Jonas J. Monast

Electric utilities are directly affected by, and in some cases are a source of, many pressing climate adaptation challenges: wildfires, vulnerable infrastructure, extreme storms, and drought. The state Public Utilities Commission (PUC) is one of the most consequential government agencies guiding the electricity sector's response to climate change. Rate-regulated utilities may not charge ratepayers for new capital investments without PUC approval. When PUCs decide which costs are eligible for rate recovery, they also define which risks utilities seek to manage and which hedging strategies they use to do so. This Article argues that the foundational principles of ratemaking allow the state PUC to manage many aspects of electricity sector adaptation planning, coordination, and implementation. The Article begins with an overview of ratemaking for electric utilities and identifies how the process is an exercise in risk management. The Article then explains how a risk governance perspective can position the PUC to explicitly incorporate climate adaptation into ratemaking procedures as well as help coordinate adaptation policy across multiple agencies.


2018 ◽  
Vol 4 (1) ◽  
pp. 78
Author(s):  
Faisal Rahman

AbstrakTulisan ini menganalisis tentang implementasi Doktrin TNI yaitu Doktrin Tridarma Ekakarma (Tridek) dengan menggunakan Teori Perimbangan Kekuatan. Teori yang digunakan merupakan teori versi Barry Posen yang menggunakan tiga variabel, yaitu geografi, teknologi, dan koalisi. Teori tersebut berasumsi bahwa variabel teknologi merupakan variabel yang paling melihat ke arah luar negara dalam sebuah doktrin militer. Melalui teori Perimbangan Kekuatan, Doktrin Tridek dalam melihat ke arah luar negara memiliki berbagai kendala. Dalam variabel geografi, kendala utamanya adalah pemerintah dan TNI cenderung melihat ancaman berasal dari dalam negara. Dalam variabel teknologi, pemerintah telah melakukan berbagai upaya untuk mencapai MEF TNI yang diharapkan tercapai pada tahun 2024, namun salah satu kendala terbesarnya adalah terbatasnya anggaran yang dialokasikan oleh pemerintah untuk pemenuhan MEF TNI tersebut. Dalam variabel koalisi, salah satu kendala terbesarnya adalah masing-masing negara dalam kerja sama pertahanan, khususnya kerja sama multilateral, mempunyai agenda dan kepentingan yang berbeda dengan negara lain sehingga menyebabkan kerja sama pertahanan tersebut terhambat kemajuannya. Namun, dari berbagai upaya pemerintah dan TNI melalui Doktrin Tridek untuk melihat ke arah luar negara, variabel koalisi merupakan variabel yang mempunyai pengaruh terbesar dalam implementasi Doktrin Tridek. Hal tersebut dapat dilihat dari dilakukannya strategi hedging oleh pemerintah yang dijalankan oleh Kementerian Pertahanan dan TNI melalui diplomasi pertahanan berjalan lebih baik jika dibandingkan dengan variabel-variabel lainnya yang memiliki kendala yang rumit.Kata kunci: Doktrin, Geografi, Koalisi, Perimbangan Kekuatan, Teknologi AbstractThis paper analyzes the implementation of TNI doctrine, Tridarma Ekakarma Doctrine (Tridek) by using Balance of Power Theory. Based on this theory, Barry Posen uses three determinant variables named geography, technology, and coalition. It assumes that technological is outwardly looking variable in a military doctrine. Through the theory of Balance of Power, Tridek doctrine in looking beyond the state has various constraints. In geographic variables, the main constraint is that the government and TNI tend to see threats coming from within the country. In technological variables, the government has made various efforts to achieve the TNI MEF which is expected to be achieved by 2024, but one of the biggest obstacles is the limited budget allocated by the government to the fulfillment of the TNI MEF. In the coalition's variables, one of the biggest obstacles is that each country in defense cooperation, especially multilateral cooperation, has different agendas and interests with other nations, causing such defense cooperation to hamper its progress. However, from various government and TNI efforts through Tridek doctrine to look beyond the state, coalition variables are the variables that have the greatest influence in the implementation of the Tridek Doctrine. This can be seen from the implementation of hedging strategies by the government run by the Ministry of Defense and TNI through defense diplomacy runs better when compared with other variables that have complex constraints.Keywords: Balance of Power, Coalition, Doctrine, Geography, Technology


2019 ◽  
Vol 2019 ◽  
pp. 1-11
Author(s):  
Xing Yu ◽  
Yanyin Li ◽  
Zhongkai Wan

In this paper, we consider a risk averse competitive firm that adopts currency futures and options for hedging purpose. Based on the assumption of unbiased markets of currency futures and options, we propose the optimal hedging model in dynamic setting. By using two-stage optimization method, we prove that it is desirable for the prudent enterprise to buy exchange rate options to hedge currency risk. Furthermore, we derive the closed-form solutions of the multiperiod hedging problem with the quadratic utility function. We investigate an empirical study incorporated into GARCH-t prediction on the efficiency of hedging with currency futures and options. The empirical results demonstrate that hedging with currency futures and options can reduce the silver export firm’s risk exposure. Profits and the effective boundaries are compared in three cases: hedging with futures and options synchronously, only with futures and without any hedge. The results of multiple comparisons among different hedging strategies show that hedging with linear and nonlinear derivatives is advisable for the export firm.


Author(s):  
T. A. Welton

Various authors have emphasized the spatial information resident in an electron micrograph taken with adequately coherent radiation. In view of the completion of at least one such instrument, this opportunity is taken to summarize the state of the art of processing such micrographs. We use the usual symbols for the aberration coefficients, and supplement these with £ and 6 for the transverse coherence length and the fractional energy spread respectively. He also assume a weak, biologically interesting sample, with principal interest lying in the molecular skeleton remaining after obvious hydrogen loss and other radiation damage has occurred.


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