____ Risk Is the Risk That the Position Being Hedged

question 26

Multiple Choice

____ risk is the risk that the position being hedged by a futures contract is not affected in the same manner as the instrument underlying the futures contract.

• A)Market
• B)Liquidity
• C)Credit
• D)Basis
• E)None of these are correct.

---

Definitions:

Cognitive Skills

Mental abilities related to learning, thinking, problem-solving, memory, and decision-making.

Behavior Problems

Actions or conduct that are disruptive, harmful, or otherwise deemed inappropriate by societal norms.

Autonomous Morality

The second and final stage of Piaget’s theory of moral development, in which right and wrong are defined according to internal motives and intentions rather than objective consequences.

Moral Behavior

Refers to actions that are guided by principles of right and wrong, ethics, or values.