I am sorry i may have a silly question in my mind.

The formula of min variance hedge ratio is: min variance hedge ratio = correlation(FC, FX)*(std dev fc)/(std dev fx)

In level 2 : the hedge ratio = 1/delta

the min variance hedge ratio is used when there are foreign currency and foreign exchange involved. The hedge ratio in level 2 is used when we buy options to hedge the underlying stocks.

Is my understanding correct?