37. VARIO PAL /axy Worme ollowing indicate that a cash and carry arbitrage with 3 tures contracts would be profitable? implied repo rate actual borrowing rate 22 The cheguards the cash price minus the futures price. True 2. Anise 31. The basis is usually positive. a. True b. False 32. The full carry pricing model assumes that the futures price equals the spot price plus carrying costs per unit. a. True b. False 33. Hedgers desire to control price risk. a. True b. False 34. A perfect hedge exists if the basis does not change and the sizes of the cash and futures positions are equal. a. True b. False 35. Ceteris paribus, as time ticks away in a contango market, a same commodity contract short hedger benefits. a. True b. False VAR(basis)=VAR(cash price)+VAR(futures price)-2CORR(cash price, futures rice)*STD(cash price)*STD(futures price) 2. True False