Question
In the futures market, backwardation is a condition where the futures price is above the spot price but should decline toward it by maturity. the
"In the futures market, backwardation is a condition where"
| the futures price is above the spot price but should decline toward it by maturity. | ||
| the futures price is expected to converge to the spot price at contract maturity. | ||
| the futures price is not expected to converge to the spot price at contract maturity. | ||
| the futures price is below the spot price but should rise toward it by maturity. |
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Financial Management Principles And Practices
Authors: Sudhindra Bhat
2nd Edition
8174465863, 978-8174465863
