Refer back to question 17. Suppose that the nearest index futures contract matures in seven months rather

Question:

Refer back to question 17. Suppose that the nearest index futures contract matures in seven months rather than in six. Show how Legs Diamond can still use index futures to hedge his position. How would the maturity date affect the hedge ratio?

Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...