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The basis is defined as spot minus futures. A trader is hedging the sale of an asset with a short futures position. The basis decreases

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The basis is defined as spot minus futures. A trader is hedging the sale of an asset with a short futures position. The basis decreases unexpectedly. Which of the following is true? E M a. The hedger's position worsens. b. The hedger's position stays the same. E c. The hedger's position improves d. The hedger's position sometimes worsens and sometimes improves

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