Which One of the Following Best Defines a Carrying-Charge Market

question 21

Multiple Choice

Which one of the following best defines a carrying-charge market?

• A) market where interest is charged on the margin balance
• B) cash price is less than the futures price
• C) positive basis market
• D) spot market price is greater than the cash price
• E) spot market price exceeds the futures price

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Definitions:

Trust Fund

A legal arrangement where funds or assets are managed by a trustee on behalf of the beneficiaries, as specified in the trust agreement.

Betrayal

The act of breaking trust or confidence in a relationship, leading to emotional distress and rupture of the bond.

Vengefulness

A strong desire for revenge or payback due to real or perceived wrongs.

Transition

The process or period of changing from one state or condition to another, often involving significant personal, social, or professional changes.