Question
A short hedger's (that is, a hedger who is short the futures contract) position improves when the basis strengthens unexpectedly and worsens when the basis
A short hedger's (that is, a hedger who is short the futures contract) position improves when the basis strengthens unexpectedly and worsens when the basis weakens unexpectedly.
TRUE OR FALSE?
You must provide a short (one or two sentence) explanation for your answer. No explanation means no marks.
Start your answer with "The statement is TRUE/FALSE." Then go on to answer why.
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Survey Of Economics, Principles, Applications, And Tools
Authors: Arthur O'Sullivan, Steven M. Sheffrin, Stephen J. Perez
5th Edition
0132556073, 978-0132556071
