The price sensitivity hedge ratio uses the durations of the spot and futures positions.

Name: The price sensitivity hedge ratio uses the durations of the spot and futures positions.
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The price sensitivity hedge ratio, also known as the dollar hedge ratio, is based on the durations of the spot and futures positions. It is calculated as the ratio of the duration of the spot position to the duration of the futures position.

The Price Sensitivity Hedge Ratio Uses the Durations of the Spot