4. Table 1 gives data on spot and futures price changes for a certain commodity. Calculate the minimum variance hedge ratio.

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4. Table 1 gives data on spot and futures price changes for a certain commodity.
Calculate the minimum variance hedge ratio.
Table 1
Spot Price Changes
Futures Price Changes +0.56
+0.50 +0.61 -0.22 -0.35 +0.79
+0.63 -0.12 -0.44 +0.60
Transcribed Image Text:4. Table 1 gives data on spot and futures price changes for a certain commodity. Calculate the minimum variance hedge ratio. Table 1 Spot Price Changes Futures Price Changes +0.56 +0.50 +0.61 -0.22 -0.35 +0.79 +0.63 -0.12 -0.44 +0.60
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