Basis Risk Explained (FRM Part 1, Book 3, Financial Markets and Products)

[BhromonBhomra]

Checked so many videos, and read book but wasnt getting the concept. Thanks for the detailed explanation. Really good quality video.

[joeylee]

Absolutely elite teaching. Outstanding explanation. Helped me so much!

[sunnybadalia]

Wowww... Upload all the videos of FRM... Your explanation is amazing and hitting directly on concepts

[rahul]

It's amazing I loved the concept clarification thought process of the video !! You stress more on concepts rather than learning the formula's 😇😇

[parthpatel]

at 6:30 - if youre entering a contract to sell the asset in the future at a predetermined price F, how is this a long exposure? Isnt a long exposure when you enter the contract to BUY the asset at a forward price F???

[SamuelTanzw]

Superb explanation! Very simple to understand! Loved the way you explained basis risk with regards to timing mismatch.

[padamheda]

Hey, thank you for such a great explanation. Understood the concept of basis very well now.

[anantlakhotia]

It helped understanding the concept thank you for the video.

[HamzaAbbas_]

Amazing explanation of basis risk! Thanks

[tapio_m]

This was fantastic. Great pictures and great explanation. Thank you so much!

[Ahmad-tqcc]

Your channel is really interesting and helpful! Keep it up! Love the derivatives videos

[akshaysharma]

A numerical on same would also be helpful

[sanelalappatt]

How is in " a more real World" b(T)= S(T) - F(0, Tf)? If t [ 0 ; 1; 2], where 0 is when you take a long hedge, 1 is where we offset position (T) and 2 is the expiration like (Tf) in your examples –> b(1)= S(1) - F(0, 2)? Don't really make sense to me ;/