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(i) Basis risk
I am with experts - option1 is my choice of answer as well.
Agree with the experts because of the explanations.
Answer option (i) >>>>>>>>>. Basis risk
'Basis Risk'
The risk that offsetting investments in a hedging strategy will not experience price changes in entirely opposite directions from each other. This imperfect correlation between the two investments creates the potential for excess gains or losses in a hedging strategy, thus adding risk to the position
The correct answer i
My answer will be for I..........................
The correct answer is: (i) Basis risk
To the best of my knowledge it should be (i) Basis risk
all answers here is enough too much thanx
OPTION I
Correct answer option Number1
