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Hedging ratios and effectiveness for diesel fuel and gasoline the northern plains
Author(s) -
Conley Dennis M.
Publication year - 1994
Publication title -
agribusiness
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.57
H-Index - 43
eISSN - 1520-6297
pISSN - 0742-4477
DOI - 10.1002/1520-6297(199407/08)10:4<305::aid-agr2720100404>3.0.co;2-t
Subject(s) - futures contract , diesel fuel , gasoline , economics , hedge , agribusiness , price risk , basis risk , financial economics , econometrics , agriculture , engineering , capital asset pricing model , waste management , geography , ecology , archaeology , biology
Agribusinesses must cope with the risk of price changes when retailing refined fuels. Hedging price risk with energy futures contracts is a possibility. Information is needed on the local basis, hedge ratios, and hedging effectiveness. The results vary by location. ©1994 by John Wiley & Sons, Inc.