Question: If I predict there is decrease in the price of commodity A in the Future. I chose to hedge my position worth $3,000,000 today using
If I predict there is decrease in the price of commodity A in the Future. I chose to hedge my position worth $3,000,000 today using futures on commodity B. given the correlation between goods A and B is 0.93. Std Dev for A is 0.03, Std Dev for B is 0.04. And Value of one future unit is $50 what is Min Variance hedge ratio and number of contract
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