Question: A hedge ratio can be computed as: Multiple Choice None of the options are correct. profit derived from one futures position for a given change

A hedge ratio can be computed as:

Multiple Choice

None of the options are correct.

profit derived from one futures position for a given change in the exchange rate divided by the change in value of the unprotected position for the same exchange rate.

the change in value of the unprotected position for a given change in the exchange rate divided by the profit derived from one futures position for the same exchange rate.

profit derived from one futures position for a given change in the exchange rate plus the change in value of the unprotected position for the same exchange rate.

the change in value of the unprotected position for a given change in the exchange rate plus by the profit derived from one futures position for the same exchange rate.

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