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We defined the basis at time t as B t = S t - t F T . If the market is in contango when

We defined the basis at time t as B_t= S_t-_tF_T.

If the market is in contango when you initiate your position at time t, what is the expected change in the basis from t to T?

First an increase and then a decrease

A decrease

An increase

No change

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