A widely used approach for calculating hedge ratios for Treasury futures contracts assumes that the contract will be settled with the currently cheapest-to-deliver note or bond; with that single-deliverable assumption, the futures' PVBP (price value of a ..... point) is the converted, forward PVBP of $100,000 par of the cheapest to deliver. (*) basal (*) base (*) basic (*) basis
This is a companion discussion topic for the original entry at https://english.best/questions/9742,a-widely-used-approach-for-calculating-hedge-ratios-for-treasury-futures-contracts-assumes-that-the-contract-will-be-settled-with-the-currently-cheapest-to-deliver-note-or-bond-with-that-single-deliverable-assumption-the-futures-pvbp-price-value-of-a-___-point-is-the-converted-forward-pvbp-of-100000-par-of-the-cheapest-to-deliver/