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Suppose you wish to sell a stock after 3 months. To protect yourself against a decrease in the stock price after 3 months, you short

Suppose you wish to sell a stock after 3 months. To protect yourself against a decrease in the stock price after 3 months, you short N futures contracts today with delivery in 4 months. Find the optimal N (optimal hedge ratio) if the constant risk-free interest rate is 4%

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