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Prove that Optimal Hedge Ratio, h * , for hedging strategies using futures equals to F...

Prove that Optimal Hedge Ratio, h * , for hedging strategies using futures equals to F S h   =  * , where σS is the standard deviation of the change in the spot price during the hedging period, ΔS; σF is the standard deviation of the change in the futures price during the hedging period, ΔF; ρ is the coefficient of correlation between ΔS and ΔF.

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