100 futures contracts are used to hedge an exposure to the price of silver. Each...
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Finance
100 futures contracts are used to hedge an exposure to the price of silver. Each tutures contraction 5.000 unces of st. At the time the phone basis is $0.50 per ounce. What is the effect of the basis on the hedger's financial position if the contracts are hedging the purchase of 2 O-52.500 $250.000 O $2.500 +$250.000
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