Before You Can Use the Hedging Strategies Such as a Forward

question 29

Multiple Choice

Before you can use the hedging strategies such as a forward market hedge,options market hedge,and so on,you should consider running a regression of the form $P = a + b \times S + e$ .When reviewing the output,you should initially focus on

• A)the intercept a.
• B)the slope coefficient b.
• C)mean square error, MSE.
• D)R².

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