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Which of the following situations describe a hedger with exposure to basis risk? I. A portfolio manager for a large-cap growth fund knows he will be receiving a significant cash investment from a client within the next month and wants to pre-invest the cash using stock index futures. II. A farmer has a large crop of corn he is looking to sell before June 30. The farmer uses a June futures contract to lock in his sales price. A. I only B. II only C. Both I and II D. Neither I nor II
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