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Which of the following decreases basis risk? Greater similarity between the underlying asset of the futures contract and the hedgers exposure A decrease in correlation
Which of the following decreases basis risk?
Greater similarity between the underlying asset of the futures contract and the hedgers exposure
A decrease in correlation coefficient between the underlying asset of the futures contract and the hedgers exposure
Hedge using the stack and roll of short-term futures contracts
increase in the time between the date when the futures contract is closed and its delivery month
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