The basis (Bt,T) at time t between the spot price (St) and a futures contract expiring at time T (Ft,T) is
A) Bt,T = St + Ft,T
B) Bt,T = St - Ft,T
C) Bt,T = St * Ft,T
D) Bt,T = St/Ft,T
E) None of the above
Correct Answer:
Verified
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