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:

Latissimus Dorsi

A broad, flat muscle on the back that helps in movement of the shoulder and the upper arm.

Trapezius Group

A collection of muscles in the upper back and neck region, responsible for moving the shoulder blades and extending the neck.

Brachiocephalic

Referring to the brachiocephalic artery or vein, critical vessels that supply blood to the right arm, neck, and head.

Digastric

A muscle located under the jaw that acts in the process of opening the mouth and depressing the mandible.