Examlex
A key element in the success of many franchise organizations is the sameness of each of the franchise outlets. Explain.
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.
Short Hedger
An investor who enters into contracts or investment positions to reduce the risk of price decreases in an asset they currently own or plan to own.
Basis
In finance, the difference between the spot price of an asset and the future price, or the inverse, depending on the context.
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