The covariance of the change in spot exchange rates and the change in futures exchange rates is 0.6060,and the variance of the change in futures exchange rates is 0.5050.What is the estimated hedge ratio for this currency?
A) 0.306.
B) 0.694.
C) 1.440.
D) 1.200.
Correct Answer:
Verified
Q49: A credit forward agreement specifies a credit
Q57: A forward contract
A)has more credit risk than
Q60: Futures contracts are standard in terms of
Q60: Financial futures can be used by FIs
Q61: The current price of June $100,000 T-Bonds
Q63: The notational value of the world-wide credit
Q64: Which of the following indicates the need
Q65: An FI has reduced its interest rate
Q66: Which of the following is an example
Q67: How is a hedge ratio commonly determined?
A)By
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents