What is the difference between the cash price and the futures price of the financial instrument...

What is the difference between the cash price and the futures price of the financial instrument used for a hedge known as? a. Spread risk. b. Dollar gap risk. c. Duration gap risk. d. Basis risk.

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Expert Solution

Answer: Option d is correct.
The difference between the cash price and the futures price is called as basis risk.

jeff jeffy answered 1 year ago

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