This book is intended to be, first of all, a complete collection of empirical studies on currency options and their implications on issues of exchange rate economics, such as exchange rate risk premiums, volatility, market expectations and credibility of exchange rate regimes. It contains presentations of both original classical works in this field and most recent research work. The subjects are presented in a coherent user-friendly book format.
This book addresses two key issues of central importance in emerging electronic markets: first, improved coordination of supply and demand through options / forward contracts on output and capacity, and second the integration of such contracting methods with B2B exchanges and electronic markets. The book provides both a thorough review and synthesis of the growing literature in these areas as well extending this literature to accommodate state-dependent demand and contracting. The latter is an important issue since the spot markets for many markets, e.g. energy, are fundamentally conditioned on such variables as temperature, and therefore these "states" need to be accomodated in the underlying theory of financial instruments supporting such contracting. A discussion of emerging applications in logistics, energy, chemicals and e-manufacturing illustrate the importance of the subject matter.