In the Context of a Futures Contract, the Basis Is

question 15

Multiple Choice

In the context of a futures contract, the basis is defined as ________.

• A) the futures price minus the spot price
• B) the spot price minus the futures price
• C) the futures price minus the initial margin
• D) the profit on the futures contract

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Definitions:

Back Taxes

Taxes that have not been paid when due.

Credit Card Debt

Debt incurred by an individual that is due to the use of credit cards, often subject to high interest rates.

Discharge

The legal term for the release or elimination of a debt, obligation, or charge, often used in bankruptcy proceedings.

Student Loans

Financial loans given to students to help pay for their education expenses, often subject to repayment with interest after graduation.