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The hedge ratio is the ratio of the size...

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题目

The hedge ratio is the ratio of the size of the position taken in the futures contract to the size of the exposure. Assuming the standard deviation of change of spot price is S1, and the standard deviation of change of future price is S2, the correlation between the changes of spot price and future price is r. What is the optimal hedge ratio?

选项

A.1\/r\u00d7S1\/S2

B.1\/r\u00d7S2\/S1

C.r\u00d7S1\/S2

D.r\u00d7S2\/S1

答案

C

解析

Optimal hedge ratio: h=ρ1,2×σ1/σ2 最优对冲比率: