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VI Risk attributable to uncertain movements in spread between futures price and spot price is called the basis risk. At the maturity, basis equals zero

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VI Risk attributable to uncertain movements in spread between futures price and spot price is called the basis risk. At the maturity, basis equals zero or is very close to zero. Stock index futures cannot help investors hedge against systematic risk The future prices and spot prices converge at the maturity of the future contracts Previous No new data to save

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