Question: Though a cross hedge has somewhat higher risk than an ordinary hedge, it will reduce risk if which of the following occurs? Attempl due Mar

Though a cross hedge has somewhat higher risk than an ordinary hedge, it will reduce risk if which of the following occurs?
Attempl due Mar 15 at 11 pm
13 Minutes, 1 Second
the spot and futures contracts are correct priced at the onset ?**
futures prices are less volatile than spot prices
spot and futures prices are positively correlated
futures prices are more volatile than spot prices
none of the above
Though a cross hedge has somewhat higher risk

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