Which of the Following Statements About the "Basis" of Stock

question 37

Multiple Choice

Which of the following statements about the "basis" of stock index futures is true?

• A)It is the difference between the futures price and the value of the actual underlying index
• B)Negative basis is generally considered to foretell a declining market
• C)The basis reflects market changes instantaneously, while the actual underlying index moves more slowly
• D)All of the above are true

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Definitions:

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Structure located in the forebrain of vertebrates that processes information about odors detected by cells in the nasal cavity.

Hippocampus

The hippocampus is a major component of the human brain, involved in memory formation and spatial navigation.

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Cells in the nervous system that transmit information through electrical and chemical signals.

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The concentration of estrogen hormones in the body, important for regulating reproductive functions and secondary sex characteristics.