Which One of the Following Statements Regarding "Basis" Is True?I)

question 44

Multiple Choice

Which one of the following statements regarding "basis" is true?I) The basis is the difference between the futures price and the spot price.II) The basis risk is borne by the hedger.III) A short hedger suffers losses when the basis decreases.IV) The basis increases when the futures price increases by more than the spot price.

• A) I only
• B) II only
• C) III only
• D) IV only
• E) I, II, and IV.

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Definitions:

Pericardial Sac

A double-layered membrane surrounding the heart, providing it with protection and lubrication.

Occlusion

The blockage or closing of a blood vessel or hollow organ.

Cardiologist

A medical specialist focused on diagnosing and treating diseases and conditions of the heart and blood vessels.

Auscultation

The act of listening to the sounds made by the internal organs, especially the heart and lungs, with a stethoscope.