n NISM Certifications
XIII NISM Series XIII
Medium

If futures prices are lower than the spot price of an asset, market participants may expect the spot price to come down in future. This situation is called –

Practice question from NISM Series XIII for SIF - Mock Test 10 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Contango

  2. B

    Reverse System

  3. Backwardation

    Correct answer

  4. D

    Impact costs

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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