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Assume that the risk minimizing cross-hedge ratio (h) is 2.0 and the correlation coefficient, (DS, DF), is 1.0. The cash-flow risk per unit, h() =

Assume that the risk minimizing cross-hedge ratio (h) is 2.0 and the correlation coefficient, (DS, DF), is 1.0. The cash-flow risk per unit, h() = 0. (DF) must be (assume it is a forward contract, no marking to market risk) a) Zero b) 0.5[(DS)] c) 2[(DS)] d) 1.0 e) None of the above

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Assume that the risk minimizing cross-hedge ratio (h*) is 2.0 and the correlation coefficient, (DS, DF), is 1.0. The cash-flow risk per unit, h*() =

Assume that the risk minimizing cross-hedge ratio (h*) is 2.0 and the correlation coefficient, (DS, DF), is 1.0. The cash-flow risk per unit, h*() = 0. (DF) must be (assume it is a forward contract, no marking to market risk) a) Zero b) 0.5[(DS)] c) 2[(DS)] d) 1.0 e) None of the above

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Assume that the risk minimizing cross-hedge ratio (h) is 2.0 and the correlation coefficient, (DS, DF), is 1.0. The cash-flow risk per unit, h() =

Assume that the risk minimizing cross-hedge ratio (h) is 2.0 and the correlation coefficient, (DS, DF), is 1.0. The cash-flow risk per unit, h() = 0. (DF) must be (assume it is a forward contract, no marking to market risk) a) Zero b) 0.5[(DS)] c) 2[(DS)] d) 1.0 e) None of the above