Hedging Spot Fuel Oil in Singapore: Will the New Simex Contract Succeed
We assess SIMEX's new market for fuel oil futures by examining its effectiveness in hedging a cash fuel oil position in Singapore. We find that the SIMEX contract can eliminate about two-thirds of the volatility of a Singapore cash position and is many times more effective than a cross-hedge co...
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Institutional Knowledge at Singapore Management University
1990
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sg-smu-ink.lkcsb_research-24232010-09-23T06:24:04Z Hedging Spot Fuel Oil in Singapore: Will the New Simex Contract Succeed Bailey, Warren KOH, Annie We assess SIMEX's new market for fuel oil futures by examining its effectiveness in hedging a cash fuel oil position in Singapore. We find that the SIMEX contract can eliminate about two-thirds of the volatility of a Singapore cash position and is many times more effective than a cross-hedge constructed with overseas contracts. Given its potential usefulness as a hedging tool for the regional petroleum industry, we anticipate that the new contract will be a success. 1990-01-01T08:00:00Z text https://ink.library.smu.edu.sg/lkcsb_research/1424 info:doi/10.1007/bf01951482 https://doi.org/10.1007/bf01951482 Research Collection Lee Kong Chian School Of Business eng Institutional Knowledge at Singapore Management University Business |
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Asia |
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Business Bailey, Warren KOH, Annie Hedging Spot Fuel Oil in Singapore: Will the New Simex Contract Succeed |
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We assess SIMEX's new market for fuel oil futures by examining its effectiveness in hedging a cash fuel oil position in Singapore. We find that the SIMEX contract can eliminate about two-thirds of the volatility of a Singapore cash position and is many times more effective than a cross-hedge constructed with overseas contracts. Given its potential usefulness as a hedging tool for the regional petroleum industry, we anticipate that the new contract will be a success. |
| format |
text |
| author |
Bailey, Warren KOH, Annie |
| author_facet |
Bailey, Warren KOH, Annie |
| author_sort |
Bailey, Warren |
| title |
Hedging Spot Fuel Oil in Singapore: Will the New Simex Contract Succeed |
| title_short |
Hedging Spot Fuel Oil in Singapore: Will the New Simex Contract Succeed |
| title_full |
Hedging Spot Fuel Oil in Singapore: Will the New Simex Contract Succeed |
| title_fullStr |
Hedging Spot Fuel Oil in Singapore: Will the New Simex Contract Succeed |
| title_full_unstemmed |
Hedging Spot Fuel Oil in Singapore: Will the New Simex Contract Succeed |
| title_sort |
hedging spot fuel oil in singapore: will the new simex contract succeed |
| publisher |
Institutional Knowledge at Singapore Management University |
| publishDate |
1990 |
| url |
https://ink.library.smu.edu.sg/lkcsb_research/1424 https://doi.org/10.1007/bf01951482 |
| _version_ |
1770569902236631040 |