What is tailing the hedge in the context of minimum-variance hedging? Why does one tail the hedge?

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Derivatives Principles And Practice

ISBN: 9780078034732

2nd Edition

Authors: Rangarajan Sundaram

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Question Posted: Jan 10, 2024 01:00 AM

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What is tailing the hedge in the context of minimum-variance hedging? Why does one tail the hedge?

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Since futures contracts are markedtomarket on a daily basis a trader hedging with futures must accou...View the full answer

Derivatives Principles And Practice

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