The Lack of Perfect Correlation Between Spot and Futures Prices

question 7

True/False

The lack of perfect correlation between spot and futures prices implies that most hedges will have some basis risk.

---

Definitions:

Clinical Assessment

A multifaceted process whereby counselors gather information from, and about, a client to make informed decisions related to diagnosis, treatment planning, and documenting therapeutic efficacy.

Mental Disorder

A health condition characterized by significant dysfunction in an individual's cognitions, emotions, or behavior, often diagnosed according to standardized criteria.

Evaluate Progress

The process of assessing the advancement or development towards achieving a specific goal or objective.

Diagnostic Interview Schedule

A structured interview used by clinicians to diagnose psychiatric disorders based on criteria established in the DSM.