Capital markets, the separation property and hedging

Udo Broll*, Itzhak Zilcha

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review


We consider a risk-averse firm facing exchange rate and interest rate uncertainty. When international capital markets are accessible the separation property holds. However, these hedging instruments are not equivalent to creating missing interest rate futures markets.

Original languageEnglish
Pages (from-to)165-168
Number of pages4
JournalEconomics Letters
Issue number1-2
StatePublished - 1994


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