A:



a. The basis is positive.



b. Future prices are higher than cash prices.



c. The market is in backwardation.



d. Supply disruptions are abating.




Answer: B



The other answers are associated with backwardation, the opposite of contango.



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    A situation where the futures price of a commodity is above the ...
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    A theory developed in respect to the price of a futures contract ...
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  4. Convergence

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  5. Abatement

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  6. Backward Integration

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