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The spot price remains the same, but the convenience yield increases unexpectedly. Which of the following is true for a hedger with a short forward
The spot price remains the same, but the convenience yield increases unexpectedly. Which of the following is true for a hedger with a short forward position?
Select one:
a.
their forward position improves.
b.
their forward position worsens.
c.
their forward position sometimes worsens and sometimes improves.
d.
their forward position stays the same.
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