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Trades in commodities, financial assets, and currencies: A triangle of arbitrage, hedging and speculative designs

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  • Ghosh, Dilip K.
  • Arize, Augustine
  • Ghosh, Dipasri

Abstract

This work brings three markets — (i) commodities (e.g., steel iron ores, electronic parts, oil), (ii) financial assets (such as various stocks, bonds, notes), and (iii) different currencies (like U.S. dollar, British pound, euro, yen and so on) and examines the scope of triple operations of arbitrage, hedging, and speculation. Trading of cross-listed cross-currency assets with arbitrage and hedging is already recorded and analyzed. Here one more dimension — cross-country trades in commodities are added, and speculation is juxtaposed too within one framework.

Suggested Citation

  • Ghosh, Dilip K. & Arize, Augustine & Ghosh, Dipasri, 2015. "Trades in commodities, financial assets, and currencies: A triangle of arbitrage, hedging and speculative designs," Global Finance Journal, Elsevier, vol. 28(C), pages 1-9.
    • Handle: RePEc:eee:glofin:v:28:y:2015:i:c:p:1-9
    DOI: 10.1016/j.gfj.2015.11.001
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    References listed on IDEAS

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    More about this item

    Keywords

    Arbitrage; Options; Currencies; Hedging; Speculation;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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