Sentence examples for cost of hedging from inspiring English sources

"The cost of hedging has become very pricey," he said.

Without the special treatment, the derivatives market would shrink, and the cost of hedging would balloon.

For a deal involving several complex steps, his all-in price would reflect the cost of hedging his own position.

In a sign of nervousness about what is expected to be a tight vote, the cost of hedging against wild swings in the pound over the next week hit a record high on Friday.

The cost of hedging against swings in fuel prices can differ from company to company and depends on a variety of factors, including the amount of fuel involved and the types of futures or derivatives contracts used.

The cost of hedging against default on Greek government bonds, for example, has risen 40 percent since the beginning of the year, according to Markit, a data provider in London.

There are two rival hypotheses concerning the motives for and costs of hedging.

The Electric Power Supply Association, a trade group, said forcing energy derivatives onto exchanges would raise the costs of hedging and reduce market liquidity.

Not only does currency exposure add to diversification and reduce risks of home-currency inflation, he added, but "the costs of hedging eliminate so much of the yield advantage".

On this semi-replication strategy, they build a Black-Scholes PDE with bilateral counterparty risk that also takes the funding costs of hedging into account.

The transaction costs of hedging may be too high.