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

question 10

Multiple Choice

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

• 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

---

Definitions:

Complement

A complex system of proteins in the blood that works with the immune system to destroy foreign pathogens.

Cell-mediated Immunity

A form of immunity that involves the activation of T-cells and other immune cells to defend against pathogens, independent of antibody production.

Antibody-mediated Immunity

A part of the immune response in which B cells produce antibodies after recognizing antigens, leading to the neutralization or destruction of the foreign particles.

T Cells

A type of lymphocyte that plays a central role in cell-mediated immunity, differentiating in the thymus.