The Risk That Arises Because the Value of a Futures

question 26

Multiple Choice

The risk that arises because the value of a futures contract will not be perfectly correlated with the firm's exposure is called ________.

• A) commodity price risk
• B) basis risk
• C) liquidity risk
• D) speculation risk

Understand and calculate percentage increases and decreases.

Calculate the direct comparison between past and current values to determine financial changes.

Apply the concept of unit price changes to real-world problems.

Interpret financial data to determine changes in market conditions or business strategies.

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Definitions:

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