Schweser V4 pg 170 qn 6 - basis risk

CFA Level III
#1

Just curious this choice B in question 6, what is it to do with the basis risk? The answer is C, in other words, choice B is an example of basis risk. How can I understand this logic? It looks a bit funny.

#2

Question 6. which of the following is NOT an example of basis risk? Purchasing: B. a Eurodollar contract, due to lack of commodity futures.

#3

There are 13 days left until the exam. Do you really expect people to drop their studying to look up book problems to explain to you? If you really want an answer at least write out the question. Cheers :slight_smile:

#4

thanks dwight for the advise, the question vignette is written above.

#5

Well I was suggesting that you write out the question that you have instead of referencing a book page.

#6

any advise?