why is imperfect convergence a problem for a short hedger? i don't really see a problem for the hedger if the futures n spot prices don't match at the future's maturity, especially if these prices were different when the hedger entered the futures contract in the first place.
in fact, if the futures n spot prices were different at time 0, and they converged at the time of maturity, then that would result in an imperfect hedge because of the change in basis, correct?
in fact, if the futures n spot prices were different at time 0, and they converged at the time of maturity, then that would result in an imperfect hedge because of the change in basis, correct?
