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Q1.The hedge ratio provides the optimal amount in hedging instruments per unit of value exposed to risk. True or False Q2. The hedge ratio for

Q1.The hedge ratio provides the optimal amount in hedging instruments per unit of value exposed to risk.

True or False

Q2. The hedge ratio for a hedging with maturity or underlying mismatch should be obtained by running regression. The hedge ratio is the correlation between spot price and future price.

True or False

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