The Spot Price on Cocoa Is $3,540 a Ton

question 61

Multiple Choice

The spot price on cocoa is $3,540 a ton.The futures price is $3,480 a ton.The basis is ________ and the market is a(n) ________ market.

• A) -60; carrying-charge
• B) -60; inverted
• C) 20; inverted
• D) 60; carrying-charge
• E) 60; inverted

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Definitions:

Production

The process of creating goods or services by combining labor, capital, and raw materials in order to meet consumer demand.

Rental Housing Services

Rental Housing Services refer to the provision of accommodation for a payment made by tenants to landlords under agreed terms.

Owner-Occupied Housing

Residential properties that are occupied by the owner of the property, differentiating these from rental properties or investment properties.

Market Value

The present cost at which a good or service is available for purchase or sale on the public market.