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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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