Suppose that the standard deviation of quarterly changes in the prices of a commodity is $0.65, the standard deviation of quarterly changes in a futures price on the commodity is $0.81, and the coefficient of correlation between the two changes is 0.8. What is the optimal hedge ratio for a three-month contract? What does it mean?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Suppose that the standard deviation of quarterly changes in the prices of a commodity is $0.65, the standard deviation of quarterly changes ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Many products in a supermarket can be found in more than one place throughout the stores. what type of retail analytics technique is used to decide where to place products in a store?
Answers (1)
Performance ambiguity lowers the cost of control. True or false?
Answers (1)
The average test score of rsm students in september increased by 10%. in october it increased by another 15%. by what percent did the average score on the test increase during the two months?
Answers (1)
A group of design engineers for ford motor company spends two months of summer in the arizona desert researching fuel performance at extreme temperatures. ford uses the results of these tests to improve the quality of its automobiles.
Answers (1)
Which statement is true? A. Monopolies tend to charge lower prices than perfectly competitive firms. B. MR = P if the demand curve is downward sloping. C. MR = MC is a profit-maximizing rule for firms in perfect competition only. D.
Answers (1)
New Questions in Business
Potential real gdp = $200 billion natural rate of unemployment = 6 percent actual rate of unemployment = 12 percent refer to the accompanying data, which is for a specific year in a hypothetical economy for which okun's law is applicable.
Answers (1)
Assume that a $1,000 bond issued in 2015 pays $100 in interest each year. What is the current yield on the bond if it can be purchased for $1,200? Enter your answer in percent form and to one decimal place. For example, if your answer is 0.034 (3.
Answers (1)
Flex Co. just paid total dividends of $975,000 and reported additions to retained earnings of $2,925,000. The company has 675,000 shares of stock outstanding and a benchmark PE of 16.9 times. What stock price would you consider appropriate?
Answers (1)
Improving performance and striving for a better career is an example of ...
Answers (1)
When dvds and hamburgers were the same price, mavis consumed 3 hamburgers and 5 dvds, and mavis received 10 utils from the last hamburger and 15 utils from the last dvd consumed.
Answers (1)