Question
The basis is defined as spot price minus futures price. A trader is hedging the future sale of an asset with a short futures position.
The basis is defined as spot price minus futures price. A trader is hedging the future sale of an asset with a short futures position. The basis increases unexpectedly. Explain what happens to the traders position?
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A Study In Public Finance
Authors: A. C. Pigou
1st Edition
1443722766, 978-1443722766
