Level 6: Hedging with futures

How a futures hedge fixes the effective price up to the basis, the number of contracts that reduces a price risk the most, and hedging a share portfolio with a stock index.

• Basis risk and the effective price
• The minimum variance hedge ratio
• Hedging a share portfolio with an index
• Mixed practice: all three skills

Level 7: Black-Scholes-Merton and the Greeks →