Answer: Basis risk.

**Explanation:** - **A (Correct):** Basis risk refers to the potential divergence between the expected value of a derivative instrument and the value of the underlying or hedged transaction. This arises due to differences in timing, pricing, or other factors. - **B (Incorrect):** Liquidity risk pertains to the potential mismatch in the timing of cash flows between a derivative instrument and the underlying or hedged transaction, not the divergence in expected values. - **C (Incorrect):** Systemic risk involves the broader implications of excessive risk-taking and leverage in derivative markets, rather than the specific divergence between derivative and underlying values.

Author: LeetQuiz Editorial Team