The Difference Between the Current Spot Price and the Futures

question 16

Multiple Choice

The difference between the current spot price and the futures price is known as the

• A) spread.
• B) barrier.
• C) basis.
• D) open interest.

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Definitions:

Local Responsiveness

Adjusting or creating an approach to meet the differentiated needs of local markets, of local customers, of local stakeholders such as government officials and employees, and of suppliers and distributors.

Adjusting Approach

Adapting strategies or behaviors to better align with the current context or to meet the needs of different situations or stakeholders.

Local Markets

Marketplaces within a specific geographical area where businesses sell goods and services directly to consumers in the community.

Low-Cost Leadership

A strategy that aims at becoming the lowest-cost producer in an industry to gain a competitive advantage.