When Will the Estimated Hedge Ratio Be Greater Than One

Multiple Choice

When will the estimated hedge ratio be greater than one?

A) When spot rate changes are greater than futures rate changes.
B) When spot rate changes are less sensitive than futures price changes over time.
C) When spot rate changes are equally sensitive as futures price changes over time.
D) When basis risk is absent.
E) When the spot and future exchange rates are expected to move perfectly together.