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Basis Risk

Former userFormer user6y ago

[Content removed at user request]

John MoffatJohn MoffatTutor6y ago#1
If the current futures price is higher than the current spot rate, then it will always be higher. If the current futures price is lower than the current spot rate, then it will always be lower. This is what determines whether you add or subtract the basis risk. Have you watched my free lectures on this?
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