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If the Futures Contract Used to Hedge a Spot Position h=ρ×σ(ΔS)/σ(ΔF)h ^ { * } = \rho \times \sigma ( \Delta S ) / \sigma ( \Delta F )

question 22

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If the futures contract used to hedge a spot position is marked-to-market daily,then the minimum-variance hedge ratio formula h=ρ×σ(ΔS) /σ(ΔF) h ^ { * } = \rho \times \sigma ( \Delta S ) / \sigma ( \Delta F ) computed ignoring daily resettlement is,in absolute terms,

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ATP

Adenosine triphosphate, a crucial molecule in cellular energy transfer that drives various biological processes by providing energy.

Oxygen

A chemical element (O) essential for aerobic respiration in living organisms and accounting for about 21% of Earth's atmosphere.

NADH Reductase

An enzyme involved in the electron transport chain that helps in the transfer of electrons from NADH to other molecules.

Hydrogen Ions

Positively charged ions (H+) that play a significant role in chemical reactions, pH balance, and cellular processes.

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