Question: The basic is defined as spot minus futures. For a short hedger basic strenghtes unexpectedly. Which of the following is true? (a) The hedger position

The basic is defined as spot minus futures. For a short hedger basic strenghtes unexpectedly. Which of the following is true?

(a) The hedger position improves

(b) The hedger position worsens

(c) The hedgers position sometimes worsens and sometimes improves

(d) The hedgers position stays the same

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