Basis risk
id:
basis-risk-284-13740516
title:
Basis risk
text:
Basis risk in finance is the risk associated with imperfect hedging due to the variables or characteristics that affect the difference between the futures contract and the underlying "cash" position. It arises because of the difference between the price of the asset to be hedged and the price of the asset serving as the hedge before expiration, namely b = S - F. Barring idiosyncratic influence by the other aspects to be enumerated just below, by the time of expiration this simple difference will
brand slug:
wiki
category slug:
encyclopedia
description:
original url:
https://en.wikipedia.org/wiki/Basis_risk
date created:
date modified:
2024-04-14T02:48:32Z
main entity:
{"identifier":"Q4867577","url":"https://www.wikidata.org/entity/Q4867577"}
image:
fields total:
13
integrity:
13