Hedging in the futures markets can reduce all risk

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Reference no: EM13924832

Hedging in the futures markets can reduce all risk if:

a. price movements in both the cash and futures markets are perfectly correlated.

b. price movements in both the cash and futures markets have zero correlation.

c. price movements in both the cash and futures markets are less than perfectly correlated.

d. the hedge is a short hedge, but not a long hedge.

e. the hedge is a long hedge, but not a short hedge.

Reference no: EM13924832

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