The futures price will trade at a premium to the cash price if:
A) The yield curve is normal, and the cost of carry is positive.
B) The yield curve is normal, and the cost of carry is negative.
C) The yield curve is inverted, and the cost of carry is negative.
D) The yield curve is flat, and the cost of carry is zero.
E) None of the above.
Correct Answer:
Verified
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