Search results for "Futures contract"
showing 10 items of 70 documents
Conclusion: Discourses and Dreams on Becoming
2019
The contents in the chapters in this book have shown how ECEC institutions are both globally linked and locally constructed within networks of powers, discourses, philosophies, paradoxes and practices. The kinds of ‘becoming(s)’ that arise for these young children as a consequence are different – in an increasingly globalised world, we think, these are of great significance in thinking about the present and future realities that are posed accordingly. Thus, with this concluding chapter, we seek to address existing and future challenges, dreams and opportunities in contemplation of a future that we can only imagine, in consideration of the practices and discourses that structure becoming(s) …
Backcasting for desirable futures in Finnish forest-based firms
2020
Purpose In Finland, new forest-based sector (FBS) businesses are seen as important for the transition to the circular bioeconomy. The purpose of this study is to explore the transition of Finnish FBS companies to new business models. The aim is to understand how FBS companies define their ideal future states and related business models for the year 2030. Design/methodology/approach This study uses thematic interviews with managers from various FBS firms and companies from interfacing sectors. In the interviews, the key idea of backcasting was pursued when respondents discussed the desirable future states of their business. Findings The effort to achieve growth of the business and the appea…
Option Pricing and Hedging in the Presence of Transaction Costs and Nonlinear Partial Differential Equations
2008
In the presence of transaction costs the perfect option replication is impossible which invalidates the celebrated Black and Scholes (1973) model. In this chapter we consider some approaches to option pricing and hedging in the presence of transaction costs. The distinguishing feature of all these approaches is that the solution for the option price and hedging strategy is given by a nonlinear partial differential equation (PDE). We start with a review of the Leland (1985) approach which yields a nonlinear parabolic PDE for the option price, one of the first such in finance. Since the Leland's approach to option pricing has been criticized on different grounds, we present a justification of…
Efficient analytic approximation of the optimal hedging strategy for a European call option with transaction costs
2006
One of the most successful approaches to option hedging with transaction costs is the utility-based approach, pioneered by Hodges and Neuberger [Rev. Futures Markets, 1989, 8, 222–239]. Judging against the best possible trade-off between the risk and the costs of a hedging strategy, this approach seems to achieve excellent empirical performance. However, this approach has one major drawback that prevents the broad application of this approach in practice: the lack of a closed-form solution. We overcome this drawback by presenting a simple yet efficient analytic approximation of the solution. We provide an empirical testing of our approximation strategy against the asymptotic and some other …
Hedging spark spread risk with futures
2018
Abstract This paper discusses the spark spread risk management using electricity and natural gas futures. We focus on three European markets in which the natural gas share in the fuel mix varies considerably: Germany, the United Kingdom, and the Netherlands. We find that spark spread returns are partially predictable, and consequently, the Ederington and Salas (2008) minimum variance hedging approach should be applied. Hedging the spark spread is more difficult than hedging electricity and natural gas price risks with individual futures contracts. Whereas spark spread risk reduction for monthly periods produces values of between 20.05% and 48.90%, electricity and natural gas individual hedg…
Causalities between CO2, electricity, and other energy variables during phase I and phase II of the EU ETS
2010
The topic of this article is the analysis of the interplay between daily carbon, electricity and gas price data with the European Union Emission Trading System (EU ETS) for CO2 emissions. In a first step we have performed Granger causality tests for Phase I of the EU ETS (January 2005 until December 2007) and the first year of Phase II of the EU ETS (2008). The analysis includes both spot and forward markets—given the close interactions between the two sets of markets. The results show that during Phase I coal and gas prices, through the clean dark and spark spread, impacted CO2 futures prices, which in return Granger caused electricity prices. During the first year of the Phase II, the sho…
An overview of the service industries' future (priorities: linking past and future)
2011
The innovative future of service industries in detail from any viewpoint or theoretical perspective forms the central subject matter for this special issue. One of the sectors considered to be relevant for favouring the growth of the international economy is the services sector. The relative ease with which services can be implanted in certain activities with notably less capital than that required for most industries, as well as the direct and indirect effects it generates on the job market, are factors that have brought about belief and reliance on this sector to provide a means of growth and a way of recovering from any international economic crisis, and in the future may prove to play a…
Pioneers as Peers : How Entrepreneurial Journalists Imagine the Futures of Journalism
2021
The article investigates the futures of journalism that pioneering entrepreneurial journalists anticipate. This comprises the different imaginaries that journalists employ to make sense of journalism’s present potentials, anticipate its possible futures, and inform their decision-making. By analysing semi-structured interviews with Finnish entrepreneurial journalists, the article identifies a peer-to-peer imaginary on which the interviewees draw and construct to anticipate the potential futures of journalism. In this peer-to-peer imaginary, journalism is produced in journalists’ and audiences’ peer networks of affinity and shared interests. The imaginary promises elevated audience engagemen…
Antenarratives in Ongoing Strategic Change : Using the Story Index to Capture Daunting and Optimistic Futures
2018
Strategic organizational change is a complex, future-oriented phenomenon that is critical for any organization. Traditional means of inquiry have struggled with the difficulty of capturing the future; thus, the methods for managing things to come remain scarce. In this chapter, we contribute to managing strategic change, and thereby the future of the organization, by developing the Story Index (SIX) method. The method facilitates a better understanding of how organizational change takes shape in the discursive reality before materializing in concrete terms. SIX is an analytical process combining antenarratives and narrative rationality to reveal the emerging meanings and rationales of chang…
Proteins in Ionic Liquids: Reactions, Applications, and Futures
2019
Biopolymer processing and handling is greatly facilitated by the use of ionic liquids, given the increased solubility, and in some cases, structural stability imparted to these molecules. Focussing on proteins, we highlight here not just the key drivers behind protein-ionic liquid interactions that facilitate these functionalities, but address relevant current and potential applications of protein-ionic liquid interactions, including areas of future interest.