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What is basis risk? The uncertainty that the basis of a futures contract will change resulting in a profit or loss. Risk of the adverse
What is basis risk? The uncertainty that the basis of a futures contract will change resulting in a profit or loss. Risk of the adverse movements of the underlying asset Risk related to changes in option prices The uncertainty that the basis of a forward contract will change resulting in a profit or loss. uiz consists of 3 multiple choice questions on topic 2 lecture material. Answer all 3 questions. Question 3 If the risk is prices falling, what position on futures contracts should you take? A long position A short position A long and short position None of the above
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