When F_₀,T > E(S_T)it Is Known as

question 11

Multiple Choice

When F_₀,T > E(S_T) it is known as

• A) Backwardation.
• B) Normal backwardation.
• C) Normal contango.
• D) Inverted spread.
• E) Pure expectations equilibrium.

---

Definitions:

Sells Goods

Describes the action or process where a business entity offers physical products to consumers in exchange for payment.

Retailer

A business that sells goods directly to consumers, typically in small quantities.

Net Income

The total earnings or profit of a company after subtracting all expenses, including taxes and operating expenses, from its total revenue.

Gross Profit

Revenue minus the cost of goods sold, indicating the efficiency of a company in managing its labor and supplies in producing goods.