What is the basis of a futures contract? Give a simple example to explain your answer. What

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What is the basis of a futures contract? Give a simple example to explain your answer. What does convergence of the basis mean with respect to a futures contract?

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An Introduction to Derivative Securities Financial Markets and Risk Management

ISBN: 978-0393913071

1st edition

Authors: Robert A. Jarrow, Arkadev Chatterjee

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Question Posted: Dec 02, 2015 03:14 AM

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What is the basis of a futures contract? Give a simple example to explain your answer. What

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The spot price minus the futures price is called the basis For example if the spot price for go...View the full answer

An Introduction to Derivative Securities Financial Markets and Risk Management

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