Business, 28.12.2019 03:31 Itsyourgirllulu
Suppose that the standard deviation of quarterly changes in the prices of a commodity is $0.65, the standard deviation of quarterly changes in a futures price on the commodity is $0.81, and the coeļ¬cient of correlation between the two changes is 0.8. what is the optimal hedge ratio for a three-month contract? what does it mean?
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Suppose that the standard deviation of quarterly changes in the prices of a commodity is $0.65, the...
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