Question: . Define the optimal hedge ratio. Why is it important to make use of the optimal hedge ratio? When should the hedger have a long

. Define the optimal hedge ratio. Why is it important to

. Define the optimal hedge ratio. Why is it important to make use of the optimal hedge ratio? When should the hedger have a long position and when should he/she have a short position in the futures? Why is it important to allow for asymmetry in the optimal hedge ratio and how can this be achieved

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