What's the difference between the cash and futures price of a commodity?

A. Margin

B. Forward

C. Basis

D. Spot

Suppose you own 300 shares of a stock which is currently worth $18 a share. You just paid an option premium of $.65 to buy one put contract on this stock with a strike price of $15. What's the maximum loss per share you are avoiding by purchasing the option contract?

A. $15

B. $13

C. $15.65

D. $18

Which of the following statements best describes a hedger?

A. A value investor

B. An arbitrageur

C. An investor who shifts risk

D. A speculator