Export Decision and Risk Sharing Markets

Broll, Udo; Wahl, Jack

doi:10.3790/schm.115.1.27

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Broll, U., Wahl, J. Export Decision and Risk Sharing Markets. Journal of Contextual Economics – Schmollers Jahrbuch, 115(1), 27-36. https://doi.org/10.3790/schm.115.1.27

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Export Decision and Risk Sharing Markets

Broll, Udo | Wahl, Jack

Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 115 (1995), Iss. 1 : pp. 27–36

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Publisher Name: Duncker & Humblot
DOI: https://doi.org/10.3790/schm.115.1.27
Language: Multiple languages
Pages: 10

Broll, Udo

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Wahl, Jack

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Abstract

If we consider a risk-averse international firm under exchange rate risk in the absence of risk sharing markets, then exchange rate uncertainty has an inverse effect on export production of the firm. Provided that currency futures and currency option markets are available, the firm can undo the inverse effect of exchange rate uncertainty. The firm is able to realize even a riskless profit if the hedging markets are unbiased.

Section Title	Page	Action	Price
Udo Broll/Jack Wahl: Export Decision and\rRisk Sharing Markets	27
1. Introduction	27
2. Export without Hedging Markets	28
3. Currency Forwards Markets	30
4. Currency Options Markets	31
5. Hedging Policy	33
Conclusions	34
References	35
Zusammenfassung	36
Abstract	36

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Export Decision and Risk Sharing Markets

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