The Difference Between the Cash Price and the Futures Price

question 20

Multiple Choice

The difference between the cash price and the futures price on the same asset or commodity is known as the:

• A) basis.
• B) spread.
• C) yield spread.
• D) premium.

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Definitions:

Sunbelt Region

A region of the United States generally considered to cover the Southeast and Southwest, characterized by its warm climate, rapid population growth, and vibrant economies.

Strong Unions

Refers to labor unions that have significant bargaining power, membership, and influence over workplace conditions, wages, and benefits for their members.

Low Taxes

A fiscal policy characterized by relatively minimal tax rates for individuals or businesses, often intended to stimulüate economic growth or increase disposable income.

Kennedy International Airport

A major international airport located in Queens, New York, serving as a hub for a wide range of domestic and international flights.