Feedback for Calculate the basis for a stock ABC with current price of $185 and futures contract currently trading at $200?
OMG you guys are so not fit to teach people! Basis is usually calculated as Spot – Futures price. However, for financial assets, calculation of basis is a bit different. The formula changes to Futures price – Spot price for financial assets!
Location: Quiz B3C08 Using Futures for Hedging
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