Optimal Positioning in the Derivative Market: Review, Foundations, and Trends Available to Purchase

We review the theoretical development of optimal positioning in financial derivatives for managing corporate exposure. Our primary focus is on one-period integrated financial-operational policies featuring a bespoke financial contingent claim (or portfolio of claims) and an operational control variable. We develop a unifying theoretical framework which (a) encompasses all of existing solutions in a static set-up across the areas of of portfolio insurance, agricultural economics, and integrated financial-operational management, (b) provides researchers with a solid ground to either fill in gaps in the current literature and move forward towards a general theory of contingent claim origination. We also put forward pathways for future development, one based on current research problem, the other focusing on new methodological issue.