What is an optimal hedge and how do we calculate it? Compute the number of contracts we
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What is an optimal hedge and how do we calculate it? Compute the number of contracts we need in the hedge. How do we decide if we should implement the hedge? Why? Explain in full detail. Suppose you have a long cash position 200,000 ounces of gold. One gold futures contract is 100 troy ounces. Gold Price= 0.60 + 0.66 ( Gold Futures Price) + , R2 =0.48
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Financial Institutions Management A Risk Management Approach
ISBN: 978-0071051590
8th edition
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
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