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Broll, Udo
Wahl, Jack E.
Year of Publication: 
Series/Report no.: 
Diskussionsbeiträge - Serie II 143
This paper presents a model of a competitive risk-averse exporting firm under exchange rate risk. We show that export and hedging decisions can be separated if futures and currency options are available. A full hedge of uncertain export revenue occurs if the futures market is unbiased and the currency option premium is fair. Furthermore, institutional aspects of introducing hedging markets are presented.
Document Type: 
Working Paper

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