Question
If the short side of the market are more risk-averse, then they may want to lock in a minimum price. In this case, the futures
If the short side of the market are more risk-averse, then they may want to lock in a minimum price. In this case, the futures price can be lower than the expected spot price. As a result, the forward curve can be in _____________.
| a. | Backwardation | |
| b. | Contango | |
| c. | Hedge position | |
| d. | Expectation Hypothesis | |
| e. | Law of one price |
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10 Ways To Get Rich From Futures Trading
Authors: Giuseppe Scuti
1st Edition
1983398411, 978-1983398414
