The difference between the cash price and the futures price is called:
A) Bid-ask spread.
B) Income spread.
C) Basis.
D) Profit.
E) None of the above.

Question

Quizplus · Accepted Answer

The difference between the cash price and the futures price is referred to as the basis. This is a key concept in the trading of futures contracts and is used to gauge the relationship between cash and futures prices.

The Difference Between the Cash Price and the Futures Price