Document Type
Discussion Paper
Publication Date
2-1-1984
CFDP Number
691
CFDP Pages
33
Abstract
This paper considers non-contingent trades through either forward markets or simple contracts. The point of the inquiry is to understand the costs and benefits of trades of this nature. We focus on the tradeoff between insurance (a benefit) and the loss of flexibility in decisions (a cost) as determining properties of trading in forward markets. This tradeoff is also used to explore contract length.
Recommended Citation
Cooper, Russell, "Insurance, Flexibility and Non-contingent Trades" (1984). Cowles Foundation Discussion Papers. 924.
https://elischolar.library.yale.edu/cowles-discussion-paper-series/924