ECONOMIC EFFICIENCY AND IMPORTANCE OF HEDGING IMPERFECT TECHNIQUES

Victoria POSTOLACHE, Olga GHEREGA Universitatea de Stat „Al.Russo” din Bălţi

Аннотация

The issue of hedging derivatives is a modern and very important topic for financial science. Continually study of this topic involves building of new hedging techniques and solving problems by implementing these techniques. The most significant hedging techniques are imperfect hedging techniques. Imperfect hedging techniques can reduce the cost of coverage by taking on them risk of loss. Imperfect hedging techniques can be classified into three groups: quadratic hedging, quantile hedging and expected shortfall hedging. The choice of hedging techniques influences the structure of hedge positions. Keywords: financial derivatives, imperfect hedging, quadratic hedging, expected shortfall hedging, futures, the management of risk, hedge positions.