Question: Question 6: Prove that Optimal Hedge Ratio, h, for hedging strategies using futures equals to o h* S = F where os is the standard

Question 6: Prove that Optimal Hedge Ratio, h, for hedging strategies

Question 6: Prove that Optimal Hedge Ratio, h, for hedging strategies using futures equals to o h* S = F where os is the standard deviation of the change in the spot price during the hedging period, AS; Of is the standard deviation of the change in the futures price during the hedging period, AF; p is the coefficient of correlation between AS and AF

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