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Basis risk a. can be eliminated if one hedges with Futures contracts b. is not present when hedging with cash settled futures contracts c. is

Basis risk a. can be eliminated if one hedges with Futures contracts b. is not present when hedging with cash settled futures contracts c. is zero if the optimal hedge ratio (h*) is 1.0 d. can be eliminated if the correlation between the price of the futures contract and the spot price is - 1.0 (negative)

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