Cause the basis risk in hedge using futures

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Reference no: EM131078038

Which of the following conditions does not cause the basis risk in hedge using futures?

a. Length of time to hedge is shorter than the length of time for futures to expire.

b. Length of time to hedge is longer than the length of time for futures to expire.

c. The underlying asset of futures is not the same as the asset to be hedged

d. The amount to be hedged is different from the amount of futures contracts

Reference no: EM131078038

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