The OLS regression method has been used to estimate the hedge ratio for Jet fuel. The results are as follows:

The R-squared of the regression is 83%.

Which of the following statements is true?

Select one:

a.

The hedge effectiveness is 0.83 and the hedge ratio is 0.92.

b.

The hedge effectiveness is 0.96.

c.

The hedge ratio is 0.96.

d.

Both estimates of the hedge effectiveness and hedge ratio are 0.92.