The Minimum Variance Hedge Ratio and Beta Hedging using Futures

These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0
Check out our website http://www.onfinance.org/

Follow Patrick on twitter here: https://twitter.com/PatrickEBoyle

One problem with using financial futures contracts to hedge a portfolio of assets, is that a perfect futures contract may not exist. Thus a perfect hedge cannot be achieved.

An example would be, if an airline company executive wished to hedge the company's exposure to jet fuel prices, and found that there...