How many contracts should you buy or sell to hedge your position?
A)sell 3.477
B)buy 3.477
C)sell 4.236
D)buy 4.236
E)sell 11.235

Name: How many contracts should you buy or sell to hedge your position? A)sell 3.477 B)buy 3.477 C)sell 4.236 D)buy 4.236 E)sell 11.235
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Question

Quizplus · Accepted Answer

To hedge a position, you typically sell futures contracts. The calculation likely resulted in needing to sell approximately 3.477 contracts to effectively hedge the position.

How Many Contracts Should You Buy or Sell to Hedge