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

question 1

True/False

The basis (B_t,_T)at time t between the spot price (S_t)and a futures contract expiring at time T (_t,T)is: St - Ft,T.

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Definitions:

Superego

Part of the unconscious that consists of absolute moral standards internalized from one’s parents during childhood and from one’s culture.

Ego

In psychoanalytic theory, the part of the personality that mediates between the demands of the id, superego, and reality.

Id

A component of Sigmund Freud's psychoanalytic theory, representing the instinctual drives and unconscious desires.

Libido

According to Freud, psychical energy derived from physiological drives.