Title

The Real Costs Of Hedging In The Forward Exchange Market: An Empirical-Investigation

Comments

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Keywords

Management

Abstract

This paper empirically estimates the real costs of hedging in the forward exchange market. The real costs are defined to account for the differential between the forward rate and the future spot rate. If the forward rate was an unbiased predictor of the future spot rate, the real costs of hedging would be near zero in the long run. Yet, the real costs were often found to differ significantly from zero. These results carry important implications for firms engaged in international trade and finance.

Journal Title

Management International Review

Volume

24

Issue/Number

2

Publication Date

1-1-1984

Document Type

Article

Language

English

First Page

24

Last Page

27

WOS Identifier

WOS:A1984SX79200003

ISSN

0025-181X

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