Match the following events to the corresponding risk type.
1. A rogue trader within an institution.
2. Stock XYZ decreases in price due to a market crisis.
3. Using a put option to hedge an equity exposure.
4. Counterparty sues bank to avoid meeting its obligations.
A
1: legal risk; 2: credit risk; 3: strategic risk; 4: credit risk.
B
1: business risk; 2: market risk; 3: market risk; 4: settlement risk.
C
1: operational risk; 2: equity price risk; 3: basis risk; 4: legal risk.
D
1: reputation risk; 2: basis risk; 3: credit risk; 4: legal risk.
这个题目会做,但是不理解basis risk这个选项。麻烦解释一下basis risk的概念,谢谢