Question: What statement below is correct about long hedgers? When they hedge with futures or forward contracts, they want to lock in the price of the

What statement below is correct about long hedgers?

When they hedge with futures or forward contracts, they want to lock in the price of the commodity they plan to sell in the future.Narrower

(

less negative

)

basis represents gains for them.They benefit when futures price goes down during the hedge, but only if the spot price goes down even more.They benefit when realized price is higher than target price.

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