22-66 Which of the following measures the dollar value of futures contracts that should be sold per dollar of cash position exposure?
A)Hedge ratio.
B)Open position.
C)Implied volatility.
D)Payoff.
E)Risk ratio.

Question

Quizplus · Accepted Answer

The hedge ratio measures the dollar value of futures contracts that should be sold per dollar of cash position exposure. This ratio helps in establishing an effective hedging strategy by balancing the exposure to price fluctuations between the cash and futures markets.

22-66 Which of the Following Measures the Dollar Value of Futures