Explain the difference between a short hedge and a long
Explain the difference between a short hedge and a long hedge ?
a. What is the basis?
b. How is the basis expected to change over the life of a futures contract?
c. Explain why a strengthening basis benefits a short hedge and hurts a long hedge.
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explain the difference between a short hedge and a long hedge a what is the basisb how is the basis expected to change
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