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. It helps investors determine the appropriate number of futures contracts to buy or sell to fully hedge their exposure to the underlying asset.

Which of the Following Measures the Dollar Value of Futures