Exercise
Please note which of the following is described below.
A. Short hedge
B. Long hedge
1. _____ An investor is long an asset and short a futures contract.
2. _____ A hedger is long the current basis.
3. _____ Hedging strategy in which strengthening basis will increase profits.
4. _____ Hedging strategy in which weakening basis will increase profits.
5. _____ Hedger has a short basis position.
6. _____ Protects against falling prices.