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The Minimum Variance Hedge Ratio Under Stochastic Interest Rates

LiouiAbraham; PoncetPatrice

Management Science 2000

In an environment where interest rates are stochastic, we examine the case of a pure hedger endowed with a fixed position in a long term bond. In contrast to conventional wisdom according to whic...

DOI
10.5555/2804941.2804946
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