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FIN 411 Homework 3 due in class on March 11th 1. The following table gives data on monthly changes in the spot price and the
FIN 411 Homework 3 due in class on March 11th 1. The following table gives data on monthly changes in the spot price and the futures price for a certain commodity. Use the data to calculate a minimum variance hedge ratio. Spot Price Change Futures Price Change +0.50 +0.61 0.22 0.35 +0.79 +0.04 +0.15 +0.70 -0.51 -0.41 +0.56 +0.63 0.12 0.44 +0.60 0.06 +0.01 +0.80 t0.56 0.46
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