Which of the following risks relates to the possibility that a derivative might NOT be effective at hedging a particular asset?
a. Credit risk.
b. Legal risk.
c. Market risk.
d. Basis risk.
Answer: d
Which of the following risks relates to the possibility that a derivative might NOT be effective at hedging a particular asset?
a. Credit risk.
b. Legal risk.
c. Market risk.
d. Basis risk.
Answer: d