Question: Basis is defined as the difference between the spot price and the futures price. Given the definition of strengthening and weakening of basis, which one
Basis is defined as the difference between the spot price and the futures price. Given the definition of strengthening and weakening of basis, which one of the following statements is not true? A. If the futures price is decreasing, the spot price is increasing. This is a case of a weakening of the basis B. Both the spot and the futures price are increasing. The speed of the spot price increase is faster than that of the future price. This is a case of a strengthening of the basis c. Both the spot and the futures price are increasing. The speed of the spot price increase is faster than that of the futures price. This is a case of a weakening of the basis D. The futures price is decreasing, and the spot price is increasing. This is a case of a weakening of the basis
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