Answer:
The size of the futures position should be 64.2% of the size of the company’s exposure in a three-month hedge.
Explanation:
As given,
The standard deviation of quarterly changes in the prices of a commodity = $0.65
The standard deviation of quarterly changes in a futures price on the commodity = $0.81
The coefficient of correlation between the two changes = 0.8
Now,
Optimal hedge ratio = 0.8×
= 0.8×0.80 = 0.6419
⇒Optimal hedge = 0.6419 ≈ 0.642 = 64.2 %
⇒The size of the futures position should be 64.2% of the size of the company’s exposure in a three-month hedge.
Accomplishment is the correct answer
The answer would be C. Webcam, Speakers, and microphone.
Answer:
A good leader is someone who is willing to hold up their own issues to help others. Another example of a good leader is someone who always tries to help no matter what.
Answer:
its ture 100% you need food and shelter