Table 6.1
$\begin{array}{lccc}
\begin{array}{c}
\text { Expiration } \
\text { Time }
\end{array} & \begin{array}{c}
\text { Wheat } \
\text { Cents/Bushel }
\end{array} & \begin{array}{c}
\text { Corn } \
\text { Cents/Bushel }
\end{array} & \begin{array}{c}
\text { Soybeans } \
\text { Cents/Bushel }
\end{array} \
\hline \text { Today }=\text { spot } & 540 & 610 & 1320 \
6 \text { months } & 560 & 600 & 1350 \
12 \text { months } & 590 & 587 & 1480 \
18 \text { months } & 625 & 580 & 1370 \
24 \text { months } & 655 & 570 & 1265
\end{array}$
-Refer to the table 6.1.Which of the following terms most accurately describes the forward curve for soybeans over the next two years?
A) Contango
B) Backwardation
C) Contango and backwardation
D) None of the above

Question

Table 6.1
 $\begin{array}{lccc}
\begin{array}{c}
\text { Expiration } \
\text { Time }
\end{array} & \begin{array}{c}
\text { Wheat } \
\text { Cents/Bushel }
\end{array} & \begin{array}{c}
\text { Corn } \
\text { Cents/Bushel }
\end{array} & \begin{array}{c}
\text { Soybeans } \
\text { Cents/Bushel }
\end{array} \
\hline \text { Today }=\text { spot } & 540 & 610 & 1320 \
6 \text { months } & 560 & 600 & 1350 \
12 \text { months } & 590 & 587 & 1480 \
18 \text { months } & 625 & 580 & 1370 \
24 \text { months } & 655 & 570 & 1265
\end{array}$
-Refer to the table 6.1.Which of the following terms most accurately describes the forward curve for soybeans over the next two years?
A) Contango
B) Backwardation
C) Contango and backwardation
D) None of the above

Quizplus · Accepted Answer

The forward curve for soybeans shows an increase in price from today to 12 months (contango), followed by a decrease from 12 months to 24 months (backwardation).

Table 61 -Refer to the Table 6