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please do it in 10 minutes will upvote 5. Suppose that the standard deviation of monthly changes in the price of commodity A is $2.
please do it in 10 minutes will upvote
5. Suppose that the standard deviation of monthly changes in the price of commodity A is $2. The standard deviation of monthly changes in a futures price for a contract on commodity B (which is similar to commodity A) is $3. The correlation between the futures price and the commodity price is 0.9. What hedge ratio should be used when hedging a one-month exposure to the price of commodity AStep by Step Solution
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