3.13. If the minimum variance hedge ratio is calculated as 1.0, the hedge must be perfect. Is...

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3.13. ‘‘If the minimum variance hedge ratio is calculated as 1.0, the hedge must be perfect.’’ Is this statement true? Explain your answer.

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Fundamentals Of Futures And Options Markets

ISBN: 9780134083247

9th Edition

Authors: John Hull

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Question Posted: Jul 26, 2024 06:01 AM

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3.12. Suppose that in Example 3.4 the company decides to use a hedge ratio of 0.8. How does the decision affect the way in which the hedge is implemented and the result?
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3.13. If the minimum variance hedge ratio is calculated as 1.0, the hedge must be perfect. Is...

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Fundamentals Of Futures And Options Markets

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