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Basis is defined as spot minus futures. The basis decreases unexpectedly. Trader A is hedging the sale of an asset. Trader B is hedging the

Basis is defined as spot minus futures. The basis decreases unexpectedly. Trader A is hedging the sale of an asset. Trader B is hedging the purchase of an asset. Which of the following is true?

Both traders

positions worsen.

Trader A

s position improves.

Trader B

s position improves.

Trader B

s position worsens.

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