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A company is hedging the purchase of dyestuff. There are four types of futures contract potentially correlated with the commodity. Which futures contract should it

A company is hedging the purchase of dyestuff. There are four types of futures contract potentially correlated with the commodity. Which futures contract should it use?

A.
correlation = 0.8

B.
correlation = 0.6

C.
correlation = 0.4

D.
correlation = 0.2

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	A.	correlation = 0.8
	B.	correlation = 0.6
	C.	correlation = 0.4
	D.	correlation = 0.2