If one cannot create a perfect hedge, what are the alternatives? Give an example to explain your
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A perfect hedge cannot be set up when 1 a futures contract does not trade on the commodity being hedged 2 even if a futures contract trades on the commodity being hedged date of maturity or contract s...View the full answer
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Related Book For
An Introduction to Derivative Securities Financial Markets and Risk Management
ISBN: 978-0393913071
1st edition
Authors: Robert A. Jarrow, Arkadev Chatterjee
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