The basis (B_t,_T)at time t between the spot price (S_t)and a futures contract expiring at time T (_t,T)is: St - Ft,T.

Name: The basis (B t , T )at time t between the spot price (S t )and a futures contract expiring at time T ( t,T )is: St - Ft,T.
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Question

Quizplus · Accepted Answer

The basis between the spot price and a futures contract expiring at time T is the difference between the spot price and the futures price, which is St - Ft,T. Therefore, the statement is true.

The Basis (Bt,T)at Time T Between the Spot Price (St)and

The Basis (B_t,_T)at Time T Between the Spot Price (S_t)and