Contango charge is paid by __________.
A. bull speculator to bear speculator
B. bear speculator to bull speculator
C. lame duck to bull speculator
D. stag to under writer
Answer: Option A
Solution(By Examveda Team)
Contango charge is paid by bull speculator to bear speculator. When the spot price is higher than the futures price, the market is said to be in backwardation. It is often called 'normal backwardation' as the futures buyer is rewarded for risk he takes off the producer. If the spot price is lower than the futures price, the market is in contango".This Question Belongs to Commerce >> Business And Commerce
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