Question
7.Which of the following best describes normal contango? Select one: a. The cost of carry is negative b. The spot price is less than the
7.Which of the following best describes normal contango? Select one:
a. The cost of carry is negative
b. The spot price is less than the futures price
c. None of the options
d. The expected spot price is less than the futures price
e. The futures price is less than the spot price
8.The value of a long position in a forward contract at expiration is Select one:
a. The spot price plus the original forward price
b. The spot price minus the original forward price
c. The spot price minus the original forward price discounted to expiration
d. None of the options
e. The original forward price discounted to expiration
9.A futures contract can have negative value.
Select one: True False
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