The Research On Hedging Of Rape Oil Futures

In recent years, the price of rape oil is alternating. Since march 2008,the price of rape oil have tumbling until the end of 2008.The recovery of price occurred in 2009.Price volatility will increase the risk of enterprise. The solution of this problem is hedging for risk aversion. With economic globalization, new financial instruments are emerging and futures take the role in economic development. Rape oil processing enterprises take part in hedging for minimizing risk.Structurally, the article is composed of six chapters. The emphasis of the article is study of strategies about rape oil hedging and risk management of soybean hedging. After introducing the relative theories of hedging, study of rape oil enterprise hedging is emphasized. Then discuss an empirical study of strategies about rape oil futures hedging. This paper use Naive Approach, OLS, Bivariate Vector Autoregressive Model, Vector Error Correction Model, and CCCC-GARCH to estimate the optimal hedge ratio of rape oil cash and future prices. And to calculate risk valuation and maximum utility. In this way, we hope we can find out the best model the estimate the optimal hedge ratio. Next discuss risk management of hedging on rape oil. Finally article is pointing out the feasible strategy which is good for Rape Oil Enterprise hedging. The main final aim of the article is pointing out the feasible strategy of hedging for Rape Oil Enterprise.The innovation of the paper is study of rape oil hedging and with the AHP method,quantify the risk of hedging.