Is a Residual Risk That Arises Because the Movement in a Spot

question 4

Multiple Choice

...is a residual risk that arises because the movement in a spot (cash) asset's price is not perfectly correlated with the movement in the price of the asset delivered under a futures or forward contract.

• A)Macro risk
• B)Micro risk
• C)Basis risk
• D)Duration risk

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Definitions:

Directive-assertive

A communication style characterized by direct expressions of needs and wants, often with the expectation of compliance from others.

Passive

A state of acceptance or non-resistance to external events or situations, often implying a lack of active response.

Aggressive

Characterized by or resulting from a forceful and sometimes overly assertive pursuit of one's goals.

Johari Window

A psychological tool that helps individuals understand their relationship with themselves and others by categorizing known and unknown aspects of their personality.