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Which of the following are descriptions of basis risk? 1. It is the difference between the spot exchange rate and currency futures exchange rate 2. It is the possibility that the movements in the currency futures price and spot price will be different 3. It is the difference between fixed and floating interest rates 4. It is one of the reasons for an imperfect currency futures hedge

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Which of the following are descriptions of basis risk? 1. It is the difference between the spot exchange rate and currency futures exchange rate 2. It is the possibility that the movements in the currency futures price and spot price will be different 3. It is the difference between fixed and floating interest rates 4. It is one of the reasons for an imperfect currency futures hedge






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