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Suppose you took an investment decision based on Normal Backwardation and Normal Contango theories. a) How do you minimize the risks of investment in futures?
Suppose you took an investment decision based on Normal Backwardation and Normal Contango theories. a) How do you minimize the risks of investment in futures? Explain in detail for both normal backwardation and normal contango markets. b) Apply your solutions that you spelled out in (a) to the case of MG's experience. What went wrong? Be very clear and specific in detailing the steps.
Suppose you took an investment decision based on Normal Backwardation and Normal Contango theories.
a) How do you minimize the risks of investment in futures? Explain in detail for both normal backwardation and normal contango
markets.
b) Apply your solutions that you spelled out in (a) to the case of MG's experience. What went wrong? Be very clear and specific in detailing the steps.
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