10. Options, Futures and Other Derivatives Ch3: Hedging with Futures Part 4

[@向曙蕾]

oh my god! this video really saved me. I couldn't bear reading the textbook cause I got confused a lot.

[@amberyang3489]

Your explanation is so clear! Thanks

[@harshlodha2056]

What will happen if we overestimate or underestimate the number of contracts. In this example if we had hedge for 40 contracts(we overestimated hedge ratio), so how will it change risk exposure and everything?

[@saladuit]

What would be a good course on statistics?

[@deepkushagra]

In the excel example, please give some detail on why the delta arrays are population rather than sample

[@MarkMeldrum]

A futures contract exists for a period of time then it expires. So its life (return series) is a population, not a sample.

[@deepkushagra]

thanks a lot! somehow its itching somewhere still... thank you for the great playlist. Cheers

[@nickshen4629]

Why you say short jet fuel, should airliner long jet fuel?

[@MarkMeldrum]

No. Since they are a buyer,they are INHERENTLY short jet fuel. They are not actually contractually short. If the price goes up it hurts them. If you were short jet fuel, if the price went up it would hurt you. To hedge, you must offset a risk. If you are going long on heating oil, you must be short something else - right?

[@kaiwang2924]

All of the sudden it is not primary school mathematics anymore.