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:

Difference Principle

A principle suggesting that societal inequalities are only justified if they benefit the least advantaged members of society.

Economic Equalities

The state or goal of fair distribution of wealth and resources among individuals or groups, aiming for minimized financial disparities.

Social Equalities

The condition in which no differences in wealth, opportunities, and status exist among members of a society.

Normative Values

Values that are widely accepted and upheld by a group or society, guiding behavior and setting standards for what is considered right or wrong.