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Which of the following is TRUE concernin...

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题目

Which of the following is TRUE concerning basis risk? In a hedge using futures contracts:

选项

A.basis risk of the hedged security is replaced with price risk.

B.price risk of the hedged security is replaced with basis risk.

C.basis risk is eliminated but price risk still exists.

D.both basis risk and price risk are eliminated.

答案

B

解析

Using futures for hedging generally transfers the price risk into basis risk. Basis risk is a kind of risk owing to differences in price between future price and spot price.基差风险是指由于期货价格与现货价格之间存在价格差异而产生的风险。