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Which of the following increases basis risk? large difference between the futures prices when the hedge is put in place and when it is closed

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Which of the following increases basis risk? large difference between the futures prices when the hedge is put in place and when it is closed out A reduction in the time between the date when the futures contract is closed and its delivery month Dissimilarity between the underlying asset of the futures contract and the hedger's exposure None of the other choices

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