Question: The derivative strategy simulator available on CME Group uses algorithms created using artificial intelligence to forecast what a hedged position will look like over the
The derivative strategy simulator available on CME Group uses algorithms created using artificial intelligence to forecast what a hedged position will look like over the hedging horizon. Critically reflect on how such an outcome would be used in decision-making. Should hedgers purely base their hedging strategy decisions on the outcome of the strategy simulator? What is the downside of the dependence on simulations derived using artificial intelligence
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
