The Basis (B_t,T) at Time T Between the Spot Price

question 94

Multiple Choice

The basis (B_t,T) at time t between the spot price (S_t) and a futures contract expiring at time T (F_t,T) is

• A)B_t,T = S_t + F_t,T
• B)B_t,T = S_t - F_t,T
• C)B_t,T = S_t * F_t,T
• D)B_t,T = S_t/F_t,T
• E)None of the above

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Definitions:

Security Needs

Fundamental requirements concerning an individual's or entity's need for safety and protection from harm.

Deficiency Needs

According to Maslow's hierarchy of needs, these are basic needs (such as food, shelter, and safety) that must be met before an individual can focus on higher-level psychological needs.

Security Needs

Basic human requirements for safety and protection from physical or emotional harm.

Esteem Needs

In Maslow's hierarchy of needs, these are the fourth level, including respect, self-esteem, status, recognition, strength, and freedom.