Feedback for Read the following statements and choose the correct option:Statement 1: Hedge ratio is ratio of position in futures to position in underlying asset.Statement 2: Hedging cannot be done with futures of one asset and position in another asset.
How is statement 1 correct here?? It says that Hedge Ratio (HR) is the ratio of position in futures to position in underlying. This is absolutely wrong! You guys really test the patience of your students. I can’t believe there are so many errors in your questions. No one will hire you guys to work in finance with this work ethic.
Location: Quiz B3C08 Using Futures for Hedging
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