Assume the underlying asset crude oil and the futures, Financial Management

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Assume the underlying asset crude oil and the futures

You’re trying to hedge a June purchase of $100M worth of crude oil with heating oil futures expiring around the same time. Assume the underlying asset (crude oil) and the futures contract have the same volatility, and their coefficient of correlation is 0.8. You should:

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Financial Management: Assume the underlying asset crude oil and the futures

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