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Based on the following information, calculate the optimal hedge ratio and the number of futures contracts required: The correlation between the futures and spot price

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Based on the following information, calculate the optimal hedge ratio and the number of futures contracts required: The correlation between the futures and spot price movements for an asset is 0.9 The standard deviation of the asset spot price is 4.0% and the asset value is $5,000,000 The standard deviation of the price of the asset futures contract is 5.0% and one asset futures contract is priced at $100,000

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