In Metallgesellschaft's Hedging Debacle the company made long term forward contracts to sell oil/energy. Their hedge was the buy short-term futures contracts and roll into new months(called a stacked hedge). What is true about the activities of Metallgesellschaft's hedging I. sources of risk were basis risk and liquidity risk II. losses on the short term futures contracts hedge would be covered by the long term forwards III. the stacked hedge works when markets are in backwardation IV. Metallgesellschaft correctly used the optimal hedge ratio A. I, III B. I, II, IV C. I, III, IV D. I, II, III, IV