CAPITAL-MARKETS, THE SEPARATION PROPERTY AND HEDGING

Authors
BROLL U ZILCHA I
Citation
U. Broll et I. Zilcha, CAPITAL-MARKETS, THE SEPARATION PROPERTY AND HEDGING, Economics letters, 44(1-2), 1994, pp. 165-168
Citations number
5
Categorie Soggetti
Economics
Journal title
Economics letters → ACNP
ISSN journal
01651765
Volume
44
Issue
1-2
Year of publication
1994
Pages
165 - 168
Database
ISI
SICI code
0165-1765(1994)44:1-2<165:CTSPAH>2.0.ZU;2-Q
Abstract
We consider a risk-averse firm facing exchange rate and interest rate uncertainty. When international capital markets are accessible the sep aration property holds. However, these hedging instruments are not equ ivalent to creating missing interest rate futures markets.