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Thanks a lot David, I actually got the concept last night after reviewing the book like a million times. Now I am confused with Roll over hedging. I do not even know where to begin. Well i take that back,i do not know what questions to ask since i am so confused with it. I understand...

Ok so back with the beta again. if a fund manager wants to hedge all exposure to the market, does this not simply mean we would want to change the beta of the portfolio to zero so that he would be earning the risk free rate. Its mine understanding that a portfolio with a beta of zero and...

Thanks a lot, again, David you have been very helpful with my understanding of the hedgers position. I am glad i found this website. I will be around reading and researching. Thx again

Hi David, Thx for your speedy response. I don't mean to sound uneducated so I am sorry if my question is a dumb one, but our book, options, futures, and other derivatives, is quite complex to understand. By shorting futures, the commodity in question would be hedging against risk by...

Hi im new to the world of derivatives, and this is what i understand so far. I understand the relationship between the minimum variance hedge ratio = beta I understand beta can be negative, and it implies that the stock moves inversely with respect to the market. However when cross-hedging...