Suppose that in Example 3.4 the company decides to use a hedge ratio of 0.8. How does

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Suppose that in Example 3.4 the company decides to use a hedge ratio of 0.8. How does the decision affect the way in which the hedge is implemented and the result?

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Fundamentals of Futures and Options Markets

ISBN: 978-0132993340

8th edition

Authors: John C. Hull

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Question Posted: Jan 20, 2016 08:45 AM

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Suppose that in Example 3.4 the company decides to use a hedge ratio of 0.8. How does

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If the hedge ratio is 08 the company takes a long position in 16 December oil futures con...View the full answer

Fundamentals of Futures and Options Markets

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