The Difference Between the Cash Price and the Futures Price

question 20

Multiple Choice

The difference between the cash price and the futures price on the same asset or commodity is known as the:

• A) basis.
• B) spread.
• C) yield spread.
• D) premium.

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Definitions:

Introvert

An individual who prefers solitary activities and is more inwardly focused on their thoughts and feelings.

Extravert

A personality trait characterized by sociability, talkativeness, assertiveness, and high levels of emotional expressiveness.

Trait Perspective

A theoretical framework in psychology that focuses on identifying, categorizing, and measuring consistent personality characteristics.

Internal Locus

The belief that one's actions are the primary determinants of outcomes and events in their lives.