An Empirical Analysis of Hedging Instruments for Canadian Importers and Exporters: Option Contracts on USD/CAD (USX) in 2010
Bibliographic record
Abstract
ABSTRACT: In a globalized world, international business managers deal with the international trade of goods and services and are exposed to financial exchange rate risk. The traders transfer various merchandizes and services among countries with the aim of making profit. However, their profit is sometimes affected by the fluctuations in the exchange rates during the trading period. The traders have some choices to cover their foreign exchange risk. This study makes an empirical analysis of different hedging strategies through option contracts on USD for covering the currency risk of Canadian importers and exporters from/to United States of America during 2010. The findings show that for both Canadian importers and exporters, the hedged positions via shorting the options had performed better than the unhedged positions in most cases during the analysis period. However, the unhedged positions had performed better than the hedged positions via longing the options during the same period. The results related to synthetic hedging position, which is a combination of shorting and longing the options, show that the hedged positions for Canadian exporters had performed better than the unhedged position whereas the unhedged positions for Canadian importers had performed generally better than the hedged positions during 2010. Keywords: foreign exchange market, currency hedging, exporters, importers, Canada. ………………………………………………………………………………………………………………………… ÖZ: Küreselleşen bir dünyada, uluslararası işletme yöneticileri mal ve hizmetlerin uluslararası ticaretinde döviz riskine maruz kalmaktadırlar. Bu yöneticiler kâr amacı ile ülkeler arasında çeşitli mal ve hizmetleri ticaretinde bulunmaktadirlar. Ancak, kâr bazen döviz kurlarındaki dalgalanmalardan etkilenir. Yöneticilerin kur riskini yönetmek için bazı seçenekler bulunmaktadır. Bu çalışma, 2010 yıl için, Kanada’dan Amerika Birleşik Devletlerine ihracat ve Amerika Birleşik Devletleri’nden Kanada’ya ithalat yapan yöneticilerin kur riskri yönetmek için (hedging) kullandıkları USD opsiyon sözleşmelerini ampirik olarak incelemektedir. Bulgular, analiz dönemi boyunca, hem Kanadalı ithalatçı hem de Kanadalı ihracatçılar, açık (short) hedge pozisyonların hedge edilmeyen pozisyonlara göre daha iyi performans gösterdikleri tespit edilmiştir. Ancak, aynı dönemde, uzun (long) opsiyon hedge pozisyonlarına göre, hedge edilmeyen pozisyonlar daha iyi performans göstermiştir. Kanada ihracatcilar için sentetik hedge pozisyonları (kısa ve uzun opsiyon kombinasyonları) hedge edilmeyen pozisyonlara göre daha iyi performans göstermiştir. Ancak, Kananda ithalatçıları için, sentetik hedge pozisyonları hedge edilmeyen pozisyonlara göre daha kötü performans göstermiştir. Anahtar Kelimeler: Döviz piyasası, döviz, hedge, ihracatçılar, ithalatçılar, Kanada.
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How this classification was reachedexpand
Full frame distilled prediction
Teacher imitationNot calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.
Codex and Gemma teacher scores by category
| Category | Codex | Gemma |
|---|---|---|
| Metaresearch | 0.001 | 0.000 |
| Meta-epidemiology (narrow) | 0.001 | 0.001 |
| Meta-epidemiology (broad) | 0.001 | 0.000 |
| Bibliometrics | 0.008 | 0.002 |
| Science and technology studies | 0.001 | 0.000 |
| Scholarly communication | 0.000 | 0.003 |
| Open science | 0.001 | 0.000 |
| Research integrity | 0.001 | 0.001 |
| Insufficient payload (model declined to judge) | 0.000 | 0.000 |
Machine scores (provisional)
The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.
Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.
score_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from itClassification
machine, unvalidatedMachine predicted; a candidate call from one teacher head, not a consensus.
How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".