The minimum variance hedge ratio required to properly size the futures position is closest to:
A. 0.75
B. 0.79
C. 1.20
D. 1.27
Answer:A
The minimum variance hedge ratio required to properly size the futures position is closest to:
A. 0.75 B. 0.79 C. 1.20 D. 1.27
Explanation: The minimum variance hedge ratio is calculated as: