Rollover hedging and missing long-term futures markets
1989
Gardner, B.L.
Sequential rollover of annual futures positions provides farmers or others with a means of long-term hedging. Consequently, the absence of multiyear futures markets may not be a serious problem. However, year-to-year basis risk exists which can render rollovers ineffective in hedging. Evidence on soybean, corn, and cotton futures suggests that rollovers would be effective at locking in an initial price for a three-to six-year period but would be ineffective in routine hedging over a series of successive three-to six-year periods.
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书目信息
American journal of agricultural economics
卷
71
期
2
页码
311
- 318
ISSN
0002-9092
其它主题
United states; Corn; Risk behavior
语言
英语
类型
Journal Article; Text
2024-02-28
MODS