A Long Hedger Will ________ from an Increase in the Basis;

question 47

Multiple Choice

A long hedger will ________ from an increase in the basis; a short hedger will ________.

• A) be hurt; be hurt
• B) be hurt; profit
• C) profit; be hurt
• D) profit; profit

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Definitions:

Merger

The combination of two or more companies into one, where one corporation is completely absorbed by another corporation.

Corporate Takeover

A corporate takeover is the acquisition of one company by another, where the acquiring company gains control over the target company.

Consolidation

The process of combining multiple financial statements or businesses into a single entity for reporting purposes.

Vertical Integration

A strategy where a company expands its business operations into different steps on the same production path, such as when a manufacturer owns its supplier and/or distributor.