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Solve this please The basis is defined as spot minus futures prices. Evaluate which of the following is most likely to contribute to an increase
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The basis is defined as spot minus futures prices. Evaluate which of the following is most likely to contribute to an increase in basis risk. A reduction in the time between the date when the futures contract is closed and its delivery month. A large difference between the futures price when the hedge is put in place and when it is closed ou Increased dissimilarity between the underlying asset of the futures contract and the hedger's exposi An increase in the open interests of the futures contractStep by Step Solution
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