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Basis risk may arise in a hedging situation if a ) The delivery date of the futures contract and the date of the market commitment
Basis risk may arise in a hedging situation if
a The delivery date of the futures contract and the date of the market commitment do not coincide.
b The futures contract used for hedging relates to an asset that is different than the asset being
hedged.
c Both a & b
d None of the above.
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