The futures is less than the cash price in a(n) _________ market.
A) parity
B) inverted
C) basis
D) arbitrage
E) carrying-charge

Question

Quizplus · Accepted Answer

An inverted market is one where the futures price is lower than the cash price. This is often seen in commodities markets where there is a shortage in the supply of the commodity or high demand for it, leading to higher cash prices and lower futures prices.

The Futures Is Less Than the Cash Price in A(n)