Little confused as to when to hedge and not to Hedge. Is it pretty much if id - if > (F - S/ S) We HEDGE
If id - if < (F - S / S) We leave unhedged?
Little confused as to when to hedge and not to Hedge. Is it pretty much if id - if > (F - S/ S) We HEDGE
If id - if < (F - S / S) We leave unhedged?