Question: (a) Explain briefly what cross hedging implies. What is the significance of optimum hedge ratio in cross hedging? (b) in the corn futures contract, the

(a) Explain briefly what cross hedging implies. What is the significance of optimum hedge ratio in cross hedging? (b) in the corn futures contract, the following delivery months are available: March, May, July, September, and December. State the contract that should be used for hedging when the expiration of the hedge is in a) April, b) July, and c) October (c) Mention differences between an exchange traded futures contract and an over-the-counter forward contract

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