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A banking institution's risk manager aims to enhance their understanding of liquidity risk incidents by analyzing historical real-life examples. In reviewing various cases, they seek to determine which scenario best illustrates critical lessons in liquidity risk management. Specifically, which of the following lessons is most vividly demonstrated by the case of Metallgesellschaft in 1993?
A
Negative public perception of emergency borrowing from the central bank can cause a bank run.
B
Positive feedback trading in illiquid instruments can cause excessive losses
C
Hedging liabilities by rolling forward futures contracts may create cash flow mismatches.
D
Futures provide a better effective hedge for hedging commodities exposure than forwards.