Question
Bloomberg Commodity News reports that the level of copper inventories has recorded a very large and unexpected increase. All other things equal, what impact will
Bloomberg Commodity News reports that the level of copper inventories has recorded a very large and unexpected increase. All other things equal, what impact will such news have on prices?
Group of answer choices
The 6-month copper futures price as a percentage of the spot price stays the same
The copper spot price as a percentage of the 6-month futures price increases
The 6-month copper futures price as a percentage of the spot price declines
Neither of the impacts described in the other statements
The copper futures curve becomes necessarily inverted due to the trading by arbitrageurs
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