long-hedge

Learning objectives: Calculate the profit and loss on a short or long hedge. Compute the optimal number of futures contracts needed to hedge an exposure and explain and calculate the “tailing the hedge” adjustment. Explain how to use stock index futures contracts to change a stock portfolio’s...

Learning objectives: Define and differentiate between short and long hedges and identify their appropriate uses. Describe the arguments for and against hedging and the potential impact of hedging on firm profitability. Define and calculate the basis, discuss various sources of basis risk, and...

Posting this here. About long and short hedges. https://forum.bionicturtle.com/threads/p1-t3-710-long-and-short-hedges-hull-chapter-3.10546/#post-77932 As per this thread short hedge means long basis which means that if the basis strengthens we gain. I.e. the logic is that b/c i go long the...

Hi i am little confused with short&long hedge difference. In the notes, it says short hedge is agreement to sell in the future. In later notes, it says key difference is whether future price is determined. What's the connection between these two statements? e.g. for the coffee bean farmer...