Hedging Spot Fuel Oil in Singapore: Will the New Simex Contract Succeed

• المؤلفون الرئيسيون: Bailey, Warren, KOH, Annie
• التنسيق: text
• اللغة: English
• منشور في: Institutional Knowledge at Singapore Management University 1990
• الموضوعات: Business
• الوصول للمادة أونلاين: https://ink.library.smu.edu.sg/lkcsb_research/1424; https://doi.org/10.1007/bf01951482

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...