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Which of the following best describes basis risk? The risk that the basis collapses from a lack of liquidity. The risk that hedging can lead
Which of the following best describes basis risk? The risk that the basis collapses from a lack of liquidity. The risk that hedging can lead to a worse outcome. Uncertainty over the worsening of a hedgers poition. Concern over the difference between the spot and futures prices at the expiration of a hedge. Concern over the abillity to roll a contract over
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