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

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

    A theory developed in respect to the price of a futures contract ...
  3. Backward Integration

    A form of vertical integration that involves the purchase of ...
  4. Abatement

    A reduction in the level of taxation faced by an individual or ...
  5. Backward Induction

    The process of deducing backwards from the end of a problem or ...
  6. Convergence

    Convergence is the movement of the price of a futures contract ...
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