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A short hedgers (that is, a hedger who is short the futures contract) position improves when the basis strengthens unexpectedly and worsens when the basis
A short hedgers (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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