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Question 2 (a) What is basis in the futures market? Explain how basis incurs risk for companies using futures contracts to hedge. (40% weighting) (b)

Question 2 (a) What is basis in the futures market? Explain how basis incurs risk for companies using futures contracts to hedge. (40% weighting) (b) Assume that today is June 11. Your firm, an Americ...

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