Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) The variable spread between a lending rate and a borrowing rate, or between any two interest rates or prices is called basis risk.
B) The variable spread between a lending rate and a borrowing rate, or between any two interest rates or prices is called spread risk.
C) The variable spread between a lending rate and a borrowing rate, or between any two interest rates or prices is called interest spread risk.
D) The variable spread between a lending rate and a borrowing rate, or between any two interest rates or prices is called funding risk