Question: The basis is defined as spot minus futures. For a long hedger basis strengthens unexpectedly. Which of the following is true? The hedger's position sometimes

The basis is defined as spot minus futures. For a long

The basis is defined as spot minus futures. For a long hedger basis strengthens unexpectedly. Which of the following is true? The hedger's position sometimes worsens and sometimes improves. The hedger's position improves. The hedger's position worsens. The hedger's position stays the same

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