Which of the following statements about the "basis" of stock index futures is ?

Name: Which of the following statements about the "basis" of stock index futures is ?
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Question

Quizplus · Accepted Answer

All of the statements are true. The basis of stock index futures is the difference between the futures price and the actual underlying index value. A negative basis is generally considered to indicate a declining market. The basis reflects market changes instantaneously, while the actual underlying index may move more slowly.

Which of the Following Statements About the "Basis" of Stock