A short hedger is one who is short futures in order to hedge a spot cash-flow risk.

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A short hedger is one who is short futures in order to hedge a spot cash-flow risk. A long hedger is similarly one who goes long futures to hedge an existing risk. How does a weakening of the basis affect the positions of short and long hedgers?

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Derivatives Principles And Practice

ISBN: 9780078034732

2nd Edition

Authors: Rangarajan Sundaram

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Question Posted: Jan 04, 2024 06:43 AM

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A short hedger is one who is short futures in order to hedge a spot cash-flow risk.

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Derivatives Principles And Practice

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