Read Books Online and Download eBooks, EPub, PDF, Mobi, Kindle, Text Full Free.
Evaluating Hedging Strategies As A Price Risk Management Tool For Dairy Farmers With Different Levels Of Risk Aversion
Download Evaluating Hedging Strategies As A Price Risk Management Tool For Dairy Farmers With Different Levels Of Risk Aversion full books in PDF, epub, and Kindle. Read online Evaluating Hedging Strategies As A Price Risk Management Tool For Dairy Farmers With Different Levels Of Risk Aversion ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!
Book Synopsis Evaluating Hedging Strategies as a Price-risk Management Tool for Dairy Farmers with Different Levels of Risk Aversion by : Matthew William Gearhardt
Download or read book Evaluating Hedging Strategies as a Price-risk Management Tool for Dairy Farmers with Different Levels of Risk Aversion written by Matthew William Gearhardt and published by . This book was released on 2003 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Hedging Instruments and Risk Management by : Patrick Cusatis
Download or read book Hedging Instruments and Risk Management written by Patrick Cusatis and published by McGraw Hill Professional. This book was released on 2005-02-22 with total page 396 pages. Available in PDF, EPUB and Kindle. Book excerpt: Books on complex hedging instruments are often more confusing than the instruments themselves. Hedging Instruments & Risk Management brings clarity to the topic, giving money managers the straightforward knowledge they need to employ hedging tools and techniques in four key markets—equity, currency, fixed income, and mortgage. Using real-world data and examples, this high-level book shows practitioners how to develop a common set of mathematical and statistical tools for hedging in various markets and then outlines several hedging strategies with the historical performance of each.
Book Synopsis An Evaluation of Strategies for Hedging Feeder Cattle in the Pacific Northwest by : Andrew Leo Gatti
Download or read book An Evaluation of Strategies for Hedging Feeder Cattle in the Pacific Northwest written by Andrew Leo Gatti and published by . This book was released on 1984 with total page 248 pages. Available in PDF, EPUB and Kindle. Book excerpt: Over the past decade, feeder cattle backgrounders in the Pacific Northwest have been subject to sharp price fluctuations for their output. The result has been variable profits and losses. This situation creates a need for management and marketing techniques which can provide Pacific Northwest cattle ranchers with protection against price risks while enhancing the profitability of their operations. Recent economic literature has shown hedging with futures contracts to be an effective tool for mitigating risk and/or increasing the net revenues of cattle producers in a number of regions of the United States. The objective of this research was to determine whether hedging with futures contracts could have increased the profitability of Pacific Northwest feeder cattle production while decreasing the effects of price volatiliy. To realize this objective, the economic performance of alternative hedging strategies were evaluated for several methods of feeder cattle backgrounding indigenous to the Pacific Northwest region. Four hedging strategies - routine, moving average, profit objective, and triangular probability distribution - were evaluated for hedging the output of four simulated production systems. The mean and standard deviation of annual net returns were computed for each hedging strategy to serve as measures of profitability and risk, respectively. The results of not hedging were also obtained to provide a basis for comparing alternative hedging programs. Sample t and F tests were conducted to determine whether there were statistically significant differences between the means and standard deviations of the unhedged and hedged positions. Dominant hedging strategies were then identified for each production system. Based on the results of the mean-variance analysis, it appears that the use of selective futures market hedging strategies would have provided greater and more stable levels of profit compared to the net incomes obtained without hedging. Sample t and F tests, using 80 and 90 percent levels of significance respectively, showed that hedging could have significantly decreased the variability of the producer's flow of income without significantly changing the operation's average profitability. Moving average, profit objective, and triangular probability distribution strategies were dominant, increased average profitability, and significantly lowered risk for at least one production system each. Overall, moving average strategies generated the highest mean profits with the greatest risk. Profit objective strategies generally resulted in lower mean profit than moving average strategies but with less risk. The risks and returns from hedging with triangular probability distribution strategies were usually between the moving average and profit objective procedures. Strategies which performed well in this study should also perform well in the future if conditions in the feeder cattle markets do not vary substantially from those of the previous decade. Thus, hedging with futures market contracts may provide the Pacific Northwest feeder cattle producers with protection against price risk and enhanced profitability.
Book Synopsis Livestock Gross Margin-Dairy Insurance: an Assessment of Risk Management and Potential Supply Impacts by : United States Department of Agriculture
Download or read book Livestock Gross Margin-Dairy Insurance: an Assessment of Risk Management and Potential Supply Impacts written by United States Department of Agriculture and published by CreateSpace. This book was released on 2014-12-06 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: Public risk management policies for dairy producers have the potential to induce expan-sion in milk supplies, which might lower farm-level prices and offset risk-reduction benefits. An evaluation of USDA's Livestock Gross Margin-Dairy (LGM-Dairy) insur-ance program finds economic downside risk significantly reduced, with potential to induce modest supply expansion (0 to 3 percent) if widely adopted. Supply impacts are likely limited due to relatively low participation levels and a minimal ("inelastic") supply response to risk. LGM-Dairy is more flexible and convenient than other risk management tools, such as hedging directly in futures or options markets, especially for small farms.
Book Synopsis Risk Management Tools for Dairy Farmers by : John D. Anderson
Download or read book Risk Management Tools for Dairy Farmers written by John D. Anderson and published by . This book was released on 2000 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: "Due to the high level of government involvement in dairy markets, dairy farmers historically have had little reason to focus on price risk management. Because of recent changes in government policy, however, that is no longer the case. Milk prices are now more responsive than ever to supply and demand conditions in the marketplace"--Page 1.
Book Synopsis Hedging Market Exposures by : Oleg V. Bychuk
Download or read book Hedging Market Exposures written by Oleg V. Bychuk and published by John Wiley & Sons. This book was released on 2011-06-28 with total page 322 pages. Available in PDF, EPUB and Kindle. Book excerpt: Identify and understand the risks facing your portfolio, how to quantify them, and the best tools to hedge them This book scrutinizes the various risks confronting a portfolio, equips the reader with the tools necessary to identify and understand these risks, and discusses the best ways to hedge them. The book does not require a specialized mathematical foundation, and so will appeal to both the generalist and specialist alike. For the generalist, who may not have a deep knowledge of mathematics, the book illustrates, through the copious use of examples, how to identify risks that can sometimes be hidden, and provides practical examples of quantifying and hedging exposures. For the specialist, the authors provide a detailed discussion of the mathematical foundations of risk management, and draw on their experience of hedging complex multi-asset class portfolios, providing practical advice and insights. Provides a clear description of the risks faced by managers with equity, fixed income, commodity, credit and foreign exchange exposures Elaborates methods of quantifying these risks Discusses the various tools available for hedging, and how to choose optimal hedging instruments Illuminates hidden risks such as counterparty, operational, human behavior and model risks, and expounds the importance and instability of model assumptions, such as market correlations, and their attendant dangers Explains in clear yet effective terms the language of quantitative finance and enables a non-quantitative investment professional to communicate effectively with professional risk managers, "quants", clients and others Providing thorough coverage of asset modeling, hedging principles, hedging instruments, and practical portfolio management, Hedging Market Exposures helps portfolio managers, bankers, transactors and finance and accounting executives understand the risks their business faces and the ways to quantify and control them.
Book Synopsis Southern Journal of Agricultural Economics by :
Download or read book Southern Journal of Agricultural Economics written by and published by . This book was released on 1992 with total page 568 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Livestock Gross Margin-Dairy Insurance: an Assessment of Risk Management and Potential Supply Impacts by : Kenny Burdine
Download or read book Livestock Gross Margin-Dairy Insurance: an Assessment of Risk Management and Potential Supply Impacts written by Kenny Burdine and published by . This book was released on 2014-04-04 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: Public risk management policies for dairy producers have the potential to induce expansion in milk supplies, which might lower farm-level prices and offset risk-reduction benefits. An evaluation of USDA's Livestock Gross Margin-Dairy (LGM-Dairy) insurance program finds economic downside risk significantly reduced, with potential to induce modest supply expansion (0 to 3 percent) if widely adopted. Supply impacts are likely limited due to relatively low participation levels and a minimal ("inelastic") supply response to risk. LGM-Dairy is more flexible and convenient than other risk management tools, such as hedging directly in futures or options markets, especially for small farms.
Book Synopsis Hedging Commodities by : Slobodan Jovanovic
Download or read book Hedging Commodities written by Slobodan Jovanovic and published by Harriman House Limited. This book was released on 2014-02-03 with total page 454 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is an invaluable resource of hedging case studies and examples, explaining with clarity and coherence how various instruments - such as futures and options - are used in different market scenarios to contain, control and eliminate price risk exposure. Its core objective is to elucidate hedging transactions and provide a systematic, comprehensive view on hedge performance. When it comes to hedge strategies specifically, great effort has been employed to create new instruments and concepts that will prove to be superior to classic methods and interpretations. The concept of hedge patterns - introduced here - proves it is possible to tabulate a hedging strategy and interpret its use with diagrams, so each example is shown visually with the result of radical clarity. A compelling visual pattern is also attached to each case study to give you the ability to compare different solutions and apply a best-fit hedging strategy in real-world situations. A diverse range of hedging transactions showing the ultimate payoff profiles and performance metrics are included. These have been designed to achieve the ultimate goal - to convey the necessary skills to allow business and risk management teams to develop proper hedging mechanisms and apply them in practice.
Book Synopsis Livestock Gross Margin-dairy Insurance by : Kenny Burdine
Download or read book Livestock Gross Margin-dairy Insurance written by Kenny Burdine and published by . This book was released on 2014 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Cattle Price Risk Management Strategies-using Computer Simulation to Educate Iowa Producers of Available Tools by :
Download or read book Cattle Price Risk Management Strategies-using Computer Simulation to Educate Iowa Producers of Available Tools written by and published by . This book was released on 2008 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Risk is an inevitable part of production agriculture. Price risk is especially a concern for cattle producers in the Midwest. Producers can curtail profit volatility, to an extent, through the utilization of price risk management strategies such as forward contracting, hedging, using put and call options, Livestock Risk Protection Insurance (LRP), as well as Livestock Gross Insurance (LGM) for feedlot cattle. Learning about such price risk management tools can be a daunting task. Kansas State University Extension created a computer based simulation workshop to assist them in teaching cattle producers about price risk management strategies. The simulation paralleled a lecture where participants learned of the price risk management strategies that are available. The simulation allowed the workshop participants to practice using the management strategies as they assumed the role of a feedlot or ranch manager in charge of marketing the operation's calves. In a cooperative effort with Iowa State University, Kansas State University presented the Cattle Risk Management Workshops across the state of Iowa. Participants were given pre-and posttests to measure the effectiveness of the workshop. The overall post-test scores were 25 percentage points higher than the pre-test scores. This research also discusses the interest and perceptions of cattle producers regarding price risk management strategies. The effectiveness of simulations as a teaching tool in helping producers learn about price risk management strategies is also reviewed. In addition, the various price risk management strategies available to producers, as well as seasonality of prices and basis are analyzed. This research also explains and estimates the LRP Feeder Cattle Basis Model. The LRP Feeder Cattle Basis Model was developed with the objective of assisting producers in forecasting LRP basis. The model was developed using similar methodology applied in the creation of a CME basis forecasting model developed by Kansas State University Extension and Custom Ag Solutions, Inc. The LRP Feeder Cattle Basis Model automatically adjusts for the LRP price adjustment factor applied to beef steer calves weighing less than 600 pounds, and beef heifers weighing 600-900 pounds. The LRP Feeder Cattle Basis Model explains 71.37 percent of the variation of LRP basis.
Download or read book Hedging Demystified written by Tim Bishop and published by Open Road Press. This book was released on 2014-09-15 with total page 262 pages. Available in PDF, EPUB and Kindle. Book excerpt: Do changes in•commodity prices•interest rates•foreign currency exchange rates•or weather jeopardize your bottom lineFinally, it's here: a practical, straightforward book on how to manage those uncertainties. It contains clear illustrations of how futures, options, and swaps work to curb risk. Written for a businessperson by a businessperson, this handbook explains:•The mechanics of hedging•How hedging protects wealth•How to achieve more predictable earnings amid the unpredictable•Specific examples of hedgingHedging opportunities and pitfalls, Hedging Demystified is an essential guide to any business that deals with commodities, debt, international trade, or weather. This primer on hedging brings clarity and direction to make your business more sustainable.
Book Synopsis Risk Management Tools for Dairy Farmers by :
Download or read book Risk Management Tools for Dairy Farmers written by and published by . This book was released on 2011 with total page 17 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Hedging with Commodity Futures by : Su Dai
Download or read book Hedging with Commodity Futures written by Su Dai and published by GRIN Verlag. This book was released on 2013-11-12 with total page 80 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2013 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 1,7, University of Mannheim, language: English, abstract: The commodity futures contract is an agreement to deliver a specific amount of commodity at a future time . There are usually choices of deliverable grades, delivery locations and delivery dates. Hedging belongs to one of the fundamental functions of futures market. Futures can be used to help producers and buyers protect themselves from price risk arising from many factors. For instance, in crude oil commodities, price risk occurs due to disrupted oil supply as a consequence of political issues, increasing of demand in emerging markets, turnaround in energy policy from the fossil fuel to the solar and efficient energy, etc. By hedging with futures, producers and users can set the prices they will receive or pay within a fixed range. A hedger takes a short position if he/she sells futures contracts while owning the underlying commodity to be delivered; a long position if he/she purchases futures contracts. The commonly known basis is defined as the difference between the futures and spot prices, which is mostly time-varying and mean-reverting. Due to such basis risk, a naïve hedging (equal and opposite) is unlikely to be effective. With the popularity of commodity futures, how to determine and implement the optimal hedging strategy has become an important issue in the field of risk management. Hedging strategies have been intensively studied since the 1960s. One of the most popular approaches to hedging is to quantify risk as variance, known as minimum-variance (MV) hedging. This hedging strategy is based on Markowitz portfolio theory, resting on the result that “a weighted portfolio of two assets will have a variance lower than the weighted average variance of the two individual assets, as long as the two assets are not perfectly and positively correlated.” MV strategy is quite well accepted, however, it ignores the expected return of the hedged portfolio and the risk preference of investors. Other hedging models with different objective functions have been studied intensively in hedging literature. Due to the conceptual simplicity, the value at risk (VaR) and conditional value at risk (C)VaR have been adopted as the hedging risk objective function. [...]
Download or read book Tails Curtailed written by Marin Bozic and published by . This book was released on 2020 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Livestock Gross Margin Insurance for Dairy Cattle (LGM-Dairy) is a risk management tool for protecting milk income over feed cost margins. In this article, we examine the assumptions underpinning the method used to determine LGM-Dairy premiums. Analysis of the milk-feed dependence structure is conducted using copula methods, a rich set of tools that allow modelers to capture nonlinearities in dependence among variables of interest. We find a significant relationship between milk and feed prices that increases with time-to-maturity and severity of negative price shocks. Extremal, or tail, dependence is the propensity of dependence to concentrate in the tails of a distribution. A common theme in financial and actuarial applications and in agricultural crop revenue insurance is that tail dependence increases the risk to the underwriter and results in higher insurance premiums. We present, to our knowledge, the first case in which tail dependence may actually reduce actuarially fair premiums for an agricultural risk insurance product. We examine hedging effectiveness with LGM-Dairy and show that, even in the absence of basis or production risk, hedging horizon plays an important role in the ability of this tool to smooth farm income over feed cost margins over time. Rating methodology that accounts for tail dependence between milk and feed prices extends the optimal hedging horizon and increases hedging effectiveness of the LGM-Dairy program.
Download or read book Hedging Practices written by Logan Wright and published by . This book was released on 2024-08-21 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master the art of risk management with *'Hedging Practices'*, your comprehensive guide to protecting your investments and securing your financial future. In the unpredictable world of finance, understanding how to hedge effectively can mean the difference between substantial losses and consistent, steady gains. This book equips you with the knowledge and strategies needed to navigate market volatility with confidence. 'Hedging Practices' delves deep into the techniques and tools that professionals use to minimize risk, from options and futures to more complex financial instruments. Whether you're a novice investor or an experienced trader, this book provides clear, actionable insights into how to implement hedging strategies that safeguard your portfolio against market downturns and unexpected events. With real-world examples, step-by-step guidance, and expert analysis, *'Hedging Practices'* simplifies complex concepts, making them accessible and practical for investors at all levels. You'll learn how to identify risks, select the right hedging instruments, and execute strategies that align with your financial goals. In an ever-changing financial landscape, *'Hedging Practices'* is your essential resource for achieving stability and success. Whether you're looking to protect your assets, enhance your trading strategies, or simply gain a deeper understanding of risk management, this book offers the tools and knowledge you need to hedge with confidence. Prepare yourself for any market scenario and take control of your financial destiny with *'Hedging Practices'*. It's the ultimate guide for those who want to invest wisely, mitigate risk, and secure long-term success.
Book Synopsis Risk Management Tools for Dairy Farmers by : John D. Anderson
Download or read book Risk Management Tools for Dairy Farmers written by John D. Anderson and published by . This book was released on 2000 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
