bull speculator to bear speculator
bear speculator to bull speculator
lame duck to bull speculator
stag to under writer
✅ The correct answer is A.
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”.
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”.