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Which statement is correct? Justify your answer a. The basis is negative in a contango regime. b. The basis is negative in a normal backwardation
Which statement is correct? Justify your answer
a. The basis is negative in a contango regime.
b. The basis is negative in a normal backwardation regime.
c. When there is no cost-of-carry, the normal regime is normal backwardation.
d. The basis is positive in a contango regime.
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