Which of the Following Best Describes Normal Contango

question 38

Multiple Choice

Which of the following best describes normal contango?

• A)the spot price is less than the futures price
• B)the futures price is less than the spot price
• C)the expected spot price is less than the futures price
• D)the cost of carry is negative
• E)none of the above

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Definitions:

Message Importance

The significance or relevance of a message's content to its recipients, often determining the urgency and attention it receives.

Audience

The group of people targeted by a message, who receive and interpret the communication.

Purposes

The reasons for which something is done or created or for which something exists.

Verbal Communication

The exchange of information or ideas through spoken words.