Which of the Following Describes a Forward Contango

question 47

Multiple Choice

Which of the following describes a forward contango?

• A)When the forward price is less than the spot price
• B)When the forward price is more than the spot price
• C)When the investor owns something
• D)When the investor owes something

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Definitions:

Lanugo

Fine, downlike covering of the fetus.

Fetus

A fetus refers to a developing mammal or human after the embryonic stage and before birth, characterized by rapid growth and the formation of body structures.

Chorion

The outermost membrane surrounding an embryo of a reptile, bird, or mammal, contributing to the formation of the placenta in mammals.

Hairs

Filamentous biomaterials growing from the dermis of mammals, serving various functions including temperature regulation and sensation.