Describes the concept of the exposition, the dependency of a target on an untrusted external event. Describes in detail how hedges may be constructed to eliminate the exposure, including the algebra of cross-hedging and hedge ratios. The relevance of regression analysis is discussed. A running example illustrates the text.

Describes the concept of the exposition, the dependency of a target on an untrusted external event. Describes in detail how hedges may be constructed to eliminate the exposure, including the algebra of cross-hedging and hedge ratios. The relevance of regression analysis is discussed. A running example illustrates the text.
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David E. Bell
10 pages.
Publication Date: Jul 22, 1985. Prod #: 186036-PDF-ENG
Exposure and hedging HBR case solution

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