Organisms use various strategies to cope with fluctuating environmental conditions. In diversified bet-hedging, a single genotype exhibits phenotypic heterogeneity with the expectation that some individuals will survive transient selective pressures. To date, empirical evidence for bet-hedging is scarce. Here, we observe that individual Drosophila melanogaster flies exhibit striking variation i...

This paper explores the merits of hedging stochastic input costs (i.e., reducing the risk of adverse changes in costs) in a decentralized, risk neutral supply chain. Specifically, we consider a generalized version of the well-known ‘selling-to-the-newsvendor’ model in which both the upstream and the downstream firms face stochastic input costs. The firms’ operations are intertwined – i.e., the ...

This article attempts to extend the complete market option pricing theory to incomplete markets. Instead of eliminating the risk by a perfect hedging portfolio, partial hedging will be adopted and some residual risk at expiration will be tolerated. The risk measure (or risk indifference) prices charged for buying or selling an option are associated to the capital required for dynamic hedging so...

We address the problem of hedging inventory risk for a short lifecycle or seasonal item when its demand is correlated with the price of a financial asset. We show how to construct optimal hedging transactions that minimize the variance of profit and increase the expected utility for a risk-averse decision-maker. We show that for a wide range of hedging strategies and utility functions, a risk-a...

despite the importance of hedging in academic productions, its use in different disciplines and genres has been given little attention (hyland, 1998; crystal, 1995). more precisely, the role of different genders as contributors to this social phenomenon (i.e., research articles) has been taken as neutral, as if gender is inconsequential in identity construction. the studies done in english sugg...

one tactful strategy in political rhetoric is hedging which is associated with vagueness and innuendos. despite the studies that address hedging in academic discourse and conversation analysis, studies that investigate hedges in relation to political power, face, and politeness are tremendously few. to this aim, four political interviews were selected from cnn and bbc websites on the basis of t...

In variable environments, organisms must have strategies to ensure fitness as conditions change. For plants, germination can time emergence with favourable conditions for later growth and reproduction (predictive germination), spread the risk of unfavourable conditions (bet hedging) or both (integrated strategies). Here we explored the adaptive value of within- and among-year germination timing...

The basic contracts traded on energy exchanges are swaps. They involve fixed-rate payments for the delivery of electricity over a certain period of time. It has been shown that options on these swaps (called electricity swaptions) can be priced efficiently using a Hilbert space-valued timeinhomogeneous jump-diffusion model for the forward curve. We consider the mean-variance hedging problem for...

This work is devoted to the discrete time hedging of the American option on a dividendpaying stock with a convex payoff, the particular case of which is American call option. Perfect hedging requires continuous trading in time and knowledge of the partial derivative of the value function of the American option in the underlying asset. Neither one can trade continuously in time nor the closed-fo...