menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Investments Analysis and Management Study Set 2
  4. Exam
    Exam 20: Futures Contracts
  5. Question
    The Difference Between the Cash Price and the Futures Price
Solved

The Difference Between the Cash Price and the Futures Price

Question 20

Question 20

Multiple Choice

The difference between the cash price and the futures price on the same asset or commodity is known as the:


A) basis.
B) spread.
C) yield spread.
D) premium.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q15: Futures exchange members:<br>A) trade strictly for their

Q16: Futures exchanges standardize nonstandard forward contracts, establishing

Q17: Program trading generally involves positions in both

Q18: The forward price is:<br>A) the price agreed

Q19: What is meant by the term "marked

Q21: In August, Rex sold a futures contract

Q22: In the case of a futures contract,

Q23: Which of the following is a characteristic

Q24: A forward contract differs from a futures

Q25: The calendar or time spread is also

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines