In class we discuss that given a choice between liquidity, Finance Basics

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In class we discuss that given a choice between liquidity

Question: In class we discuss that given a choice between liquidity and basis risk, futures markets chose institutional arrangements that favored liquidity. Who is most impacted by this choice and why do you think maximizing liquidity is more important than minimizing basis risk?

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Finance Basics: In class we discuss that given a choice between liquidity

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Finance Basics: In class we discuss that given a choice between liquidity

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