Please include an explanation with response.

Which of the following situations describe a hedger with the exposure to basics risk.

i. A hedger seeking to hedge a position in a 5.5% coupon municipal bond with a 5.5% coupon us tresuary bond.

ii. A portfolio manager for a large-cap growth fund knows he will be receiving a significant cash investment From a client within the next month and wants to pre-invest the cash using stock index futures.

iii. A farmer has a large corn he is looking to sell before June 30. The farmer uses a June futures contract to lock in his sales price.

a) i only

b) ii and iii

c) i and ii

d) i, ii and iii