Study on Mechanics of Special Materials against Oil Volatility Risk

Article Preview

Abstract:

Crude oil is the most important material for the modern industry, while its volatility risk’s threatening to the industry developments is increasing stronger and stronger. In 2008 and 2009, some Chinese corporations have suffered from huge losses from their earlier hedging operations on crude oil prices. These incidents reflected the shortage of management methods and experiences on risks. In fact, those corporations might hedge their short positions on the crude oil puts by longing the US Treasury Bonds puts so as to avoid the huge losses.

You might also be interested in these eBooks

Info:

Periodical:

Pages:

356-361

Citation:

Online since:

April 2012

Authors:

Export:

Price:

Permissions CCC:

Permissions PLS:

Сopyright:

© 2012 Trans Tech Publications Ltd. All Rights Reserved

Share:

Citation:

[1] Fisher Black, Emanuel Derman, William Toy. A One-Factor Model of Interest Rates and Its Application to Treasury Bond Options. Financial Analysts Journal[J]. (1990).

DOI: 10.2469/faj.v46.n1.33

Google Scholar

[2] I.A. Moosa. Price Discovery and Risk Transfer in the Crude Oil Futures Market: Some Structural Time Series Evidence. Economic Notes Issue[J]. (2002).

DOI: 10.1111/1468-0300.00077

Google Scholar