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Hedging with Forwards and Futures

Conroy, Robert M.

Technical Note

Hedging with Forwards and Futures

Conroy, Robert M.

F-1428 | Published October 21, 2007 | 16 pages Technical Note

Collection: Darden School of Business

Product Details

This technical note expands on the previous note, "Forwards and Futures" (UVA-F-1427), which introduced the basics of forward and futures contracts. It begins with examples where the hedging was one-for-one and the maturity of the futures contract exactly matched the timing of the transaction. Often times the hedging approach is not as clear as it is in those examples. This note covers hedging and more complex examples.

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