Examlex
A ________ _________ is a number into which both denominators in a fraction can divide evenly.
Spot Price
The prevailing market rate where a specific asset, including commodities, currencies, or securities, can be purchased or sold for prompt distribution.
Loss
The reduction in the value of an investment or the difference between the purchase price and the lower selling price.
Basis Risk
The risk that the price of a futures contract may not move in tandem with the price of the underlying asset, leading to potential losses in a hedging strategy.
Basis
The spot price minus the futures price.
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