Publications
Publications
- July 1985 (Revised March 1994)
- HBS Case Collection
Exposure and Hedging
By: David E. Bell
Abstract
Describes the concept of exposure; the dependence of a goal on an uncertain external event. Describes in detail how hedges may be constructed to eliminate exposure, including the algebra of cross-hedging and hedge ratios. The relevance of regression analysis is discussed. A running example clarifies the text.
Keywords
Citation
Bell, David E. "Exposure and Hedging." Harvard Business School Background Note 186-036, July 1985. (Revised March 1994.)