The Number of Future Contracts Needed to Hedge a Unit

question 32

True/False

The number of future contracts needed to hedge a unit of the spot assets is solely a function of the variance of the spot prices.

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Definitions:

Inorganic Fertilizer

Fertilizers made from synthetic, chemically manufactured compounds primarily to supply essential nutrients to plants.

Salty Soil

Soil that contains a high level of soluble salts, often making it unproductive for agriculture due to its effect on the osmotic balance of plants.

Agricultural Experts

Professionals specializing in the science and practice of farming, including cultivation of the soil for the growing of crops and the rearing of animals to provide food, wool, and other products.

Over Nutrition

A form of malnutrition where the intake of nutrients is oversupplied, leading to health issues such as obesity and related diseases.