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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RELATED TERMS
  1. Contango

    A situation where the futures price of a commodity is above the ...
  2. Backwardation

    A theory developed in respect to the price of a futures contract ...
  3. Roll Yield

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  4. Abatement

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  5. Backward Induction

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  6. Forwardation

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