lecture 11 Flashcards
1
Q
A
2
Q
what is narrow basis?
A
when the cash price is high relative to the futures price
i.e the basis is strong
3
Q
what is wide basis?
A
when the cash price is low relative to the futures price
i.e the basis is weak
4
Q
A
5
Q
A
6
Q
A
7
Q
A
7
Q
A
8
Q
3 examples of fixed cost
A
handling - elevator charge
transportation
weighing
9
Q
3 examples of variable cost
A
storage
interest
administration
