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Question
How is a hedge ratio commonly determined?
A. By discounting the optimal number of futures to sell per $1 of cash position using the yield involved.
B. By using the ratio of the most recent spot and futures price changes.
C. By running an ordinary least squares regression of changes in spot prices on changes in futures prices.
D. By using the conversion factor.
E. By squaring the correlation between past changes in spot asset prices and futures prices.
Answer
This answer is hidden. It contains 1 characters.
Related questions
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