Which of the following can explain a contango?
a. the interest rate exceeds the dividend yield
b. the cost of carry is negative
c. futures prices exceed forward prices
d. the market is at less than full carry
e. none of the above
Answer: A
Which of the following can explain a contango?
a. the interest rate exceeds the dividend yield
b. the cost of carry is negative
c. futures prices exceed forward prices
d. the market is at less than full carry
e. none of the above
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.