alexa Abstract | Futures markets development as a price risk strategy in Iran's dates

European Journal of Experimental Biology
Open Access

OMICS International organises 3000+ Global Conferenceseries Events every year across USA, Europe & Asia with support from 1000 more scientific Societies and Publishes 700+ Open Access Journals which contains over 50000 eminent personalities, reputed scientists as editorial board members.

Open Access Journals gaining more Readers and Citations

700 Journals and 15,000,000 Readers Each Journal is getting 25,000+ Readers

This Readership is 10 times more when compared to other Subscription Journals (Source: Google Analytics)

Research Article Open Access

Abstract

Price risk in agricultural products has created main financial problems for agricultural producers. There are different ways and instrument to deal with these price risks or price volatility. This paper focuses on futures markets and calculates Hedge Ratio for dates. A Bivariate BEKK GARCH model, is used to determine time varying Hedge Ratios. The results show that BEKK BGARCH hedge ratio for dates is 0.7 which hedging performance is higher than the traditional one. The BEKK BGARCH hedge ratios provide 80% variance reduction, which is inferior to the constant OLS procedures. The results of this paper suggest that futures markets are good instruments for managing Dates producer price risk in Iran.

To read the full article Peer-reviewed Article PDF image

Author(s): Habibeh Sherafatmand Saeed Yazdani and Reza Moghaddasi

Keywords

Hedge ratio, BGARCH, Dates. JEL Classification: C1, C15, C32, D4.

 
Peer Reviewed Journals
 
Make the best use of Scientific Research and information from our 700 + peer reviewed, Open Access Journals
International Conferences 2017-18
 
Meet Inspiring Speakers and Experts at our 3000+ Global Annual Meetings

Contact Us

 
© 2008-2017 OMICS International - Open Access Publisher. Best viewed in Mozilla Firefox | Google Chrome | Above IE 7.0 version
adwords