__________ is a term that indicates that the futures price is lower than the spot price.
A)Backwardation
B)Arbitrage
C)Leverage
D)Contango
E)Margin

Question

Quizplus · Accepted Answer

Backwardation is the term used to describe a market where the futures price is lower than the spot price. This situation occurs when the market anticipates a shortage of the underlying asset in the future, leading to higher spot prices and lower futures prices. It creates an opportunity for investors to profit by buying the futures contract and then selling the asset at a higher spot price.

__________ Is a Term That Indicates That the Futures Price