Which of the Following Is True? Choose One $y$ -Axis) Is Regressed Against the Futures Price on The

question 6

Multiple Choice

Which of the following is true? choose one.

• A) The optimal hedge ratio is the slope of the best-fit line when the spot price on the \(y\) -axis) is regressed against the futures price on the
• \(x\) -axis).
• B) The optimal hedge ratio is the slope of the best-fit line when the futures price on the \(y\) -axis) is regressed against the spot price on the
• \(x\) -axis).
• C) The optimal hedge ratio is the slope of the best-fit line when the change in the spot price on the \(y\) -axis) is regressed against the change in the futures price on the
• \(x\) -axis).
• D) The optimal hedge ratio is the slope of the best-fit line when the change in the futures price on the \(y\) -axis) is regressed against the change in the spot price on the
• \(x\) -axis).

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Definitions:

Defined Scope Of Work

A detailed description of the tasks, deliverables, timelines, and expectations for a project, agreed upon by stakeholders.

Procurement Organization

An entity or department within a company responsible for acquiring goods, services, and contracts to meet the needs of its operations.

RFQs

Requests For Quotations, documents issued by a buyer to suppliers, asking them to provide a price quote for a specified product or service.

New Vendors

Recently established suppliers or companies that provide goods or services to consumers or businesses.