basis

  1. surbhi.7310

    Basis risk

    Hi David I have a few questions: Q1. Basis risk of a commodity = b= S0- F0 A farmer who, by taking short position in futures on his corn to hedge (his naturally long position) is benefited by which one from the 2 options below? 1. strengthening of the basis or weakening of the basis? 2. Flat...
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