Explain basis risk and instrument mismatch to a non-finance stakeholder.
Cal C Commercial lead 1 Acknowledge 2 Name mismatch 3 Offer paths The ask 20 sec Perfect hedge request Cal says: We promised a fixed resin price. I need treasury to hedge it perfectly by tomorrow. The business needs confidence, but the listed contract tracks a different grade. 70% estimated correlation 30% residual mismatch
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