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Seminar paper from the year 2012 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 1, University of Innsbruck, language: English, abstract: This seminar paper deals with three main hedging policies. It is based on the Smith and Stulz (1985) paper "the determinants of firms' hedging policies. Furthermore their results are compared with other scientific papers. At the end, one should be able to get a basic knowledge about hedging and how taxes, debt and managerial behavior can influence different policies.