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) Bt,T = Ft,T/St.
Correct Answer:
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