Contents:

Preface Introduction Christopher L. Culp and Merton H Miller The Foundations of Hedging in Futures Markets The Theory of Hedging and Speculation in Commodity Futures Johnson The Hedging Performance of the New Futures Markets Ederington Futures Trading and Hedging Working New Concepts Concerning Futures Markets and Prices Working Rationales for Corporate Hedging Should Firms Use Derivatives to Manage Risk? Fite and Pfleiderer The Determinants of a Firm's Hedging Policies Smith and Stulz Risk Management: Coordinating Investment and Financing Policies – Rethinking Risk Management Stulz The MGRM Controversy—Hedging Objectives Do Matter Metallgesellschaft and the Economics of Synthetic Storage Culp and Miller Auditing the Auditors Culp and Miller Simulating Supply Bollen and Whaley Maturity Structure of a Hedge Matters: Lessons from the Metallgesellschaft Debacle Mello and Parsons The Collapse of Metallgesellschaft: Unhedgeable Risks, Poor Hedging Strategy, or Just Bad Luck? Edwards and Canter Hedging in the Theory of Corporate Finance: A Reply to Our Critics Culp and Miller The Mathematics of Hedging Long-Dated Obligations with Short-Dated Futures Analytics Underlying the Metallgesellschaft Hedge: Short-Term Futures in a Multi-Period Environment Hilliard Hedging Long Maturity Commodity Commitments with Short-Dated Futures Contracts Brennan and Crew Metallgesellschaft: A Prudent Hedger Ruined, or a Wildcatter on NYMEX? Pirrong Hedging Long-Term Exposures with Multiple Short-Term Futures Contracts Neuberger Hedging Long Run Commitments: Exercises in Incomplete Market Pricing Ross The Stochastic Behavior of Commodity Prices: Implications for Valuation and Hedging Schwartz Conclusion – The State of the Corporate Hedging Debate Culp and Miller