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How do we deal with significant mismatches in quantity and quality of an underlying asset and the futures contract when we hedge? Group of answer

How do we deal with significant mismatches in quantity and quality of an underlying asset and the futures contract when we hedge?

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we use the hedge ratio to construct the hedge strategy

we construct a perfect hedge strategy

we make sure we use a bond to make up the difference between the underlying and futures contract

not relevant, we can always find a quality and quantity match for our underlying

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