karoliukas

One common source of basis risk shared by commodity futures and financial futures is:

A) transportation costs.

B) nothing, because they share no common sources of basis risk.

C) the difference in the timing of the transaction and the maturity of the contract.

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All futures contracts can have basis risk because of differences in the timing of the transaction being hedged and the maturity of the contract. Transportation costs are a factor with commodity futures but not with financial futures.