The Difference Between the Cash Price and the Futures Price

question 39

Multiple Choice

The difference between the cash price and the futures price is called the ________.

• A) future difference.
• B) cash-future difference.
• C) basis.
• D) basis point.

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Definitions:

Required Rate of Return

The minimum percent gain on a yearly basis that captivates entities or persons to invest in a certain security or effort.

Required Rate of Return

The minimum expected return needed from an investment to make it worthwhile.

Dividend Growth Rate

The annual pace at which a company boosts its dividend payouts to shareholders.

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded.