Chapter 8 Valuation of Acquisitions and Mergers

5.2.4 Examples of futures contract specifications – including tick size and tick value – are given below. 5.3. Basis risk. 5.3.1 Basis. is the . difference between the spot rate and the futures price. 5.3.2 Basis risk. is the . risk. that the . price of a futures contract. will . vary from the spot rates as expiry of the contract approaches ... ................
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