The difference between two different maturity futures prices on the same commodity is known as:

Question

Quizplus · Accepted Answer

The difference between two different maturity futures prices on the same commodity is known as the spread. The other choices do not accurately describe this concept. The basis refers to the difference between the cash price and the futures price, while the depth refers to the number of contracts traded at a particular price. Liquidity refers to the ease with which a contract can be bought or sold without affecting the market price, and the strike is the price at which an option can be exercised.

The Difference Between Two Different Maturity Futures Prices on the Same