Question
The basis is defined as spot minus futures. A trader is hedging the sale of an asset with a short futures position. The basis increases
The basis is defined as spot minus futures. A trader is hedging the sale of an asset with a short futures position. The basis increases unexpectedly. Which of the following is true?
A. The hedgers position improves.
B. The hedgers position worsens.
C. The hedgers position sometimes worsens and sometimes improves.
D. The hedgers position stays the same
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Dividend Growth Investing Machine
Authors: Andrew P.C.
1st Edition
1521728461, 978-1521728468
