8.

Basis risk is:

Select one:

a.

a risk that exists because the value of an item being hedged is protected from market risk.

b.

a risk that exists because the value of an item being hedged may keep the same price relationship to contracts purchased or sold in the futures markets.

c.

a risk that exists because the value of an item being hedged may not always keep the same price relationship to contracts purchased or sold in the futures markets.

d.

a risk that exists because the value of an item being hedged is insulated from market volatility.