An Optimal Hedge Ratio Is One in Which the Change

question 18

True/False

An optimal hedge ratio is one in which the change in the futures price equals the change in the spot price.

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Definitions:

City

A large human settlement generally characterized by significant population density, economic activities, and a developed infrastructure.

State

Refers to a politically organized body of people under a single government, or a specific condition or mode of being.

Region

A geographic area defined by natural, political, or cultural characteristics.

National Economic Condition

The overall health and performance of a country's economy, measured by factors like GDP, employment rates, and inflation.