P
Procrastinator
Member
Hi,
In the Glossary for the Core Reading, they define 'buying the basis' as 'buy cash bonds and sell futures'. I have just received my mock paper back, and the marker has commented that I've got it the wrong way round for question 1(v). I've looked at the solutions for the mock and it says 'buys futures and goes short of physical assets'.
Which is the right way round? I would opt for the Core reading - buying the basis means buying physical/underlying asset and selling futures. But please correct me if this wrong and if the solution for the Mock Exam question is indeed right?
Thanks.
In the Glossary for the Core Reading, they define 'buying the basis' as 'buy cash bonds and sell futures'. I have just received my mock paper back, and the marker has commented that I've got it the wrong way round for question 1(v). I've looked at the solutions for the mock and it says 'buys futures and goes short of physical assets'.
Which is the right way round? I would opt for the Core reading - buying the basis means buying physical/underlying asset and selling futures. But please correct me if this wrong and if the solution for the Mock Exam question is indeed right?
Thanks.