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If the Futures Price Is Much Higher Than the Spot

Question 158

Multiple Choice

If the futures price is much higher than the spot or current price, that is a sign that smart people with their own money on the line think that:


A) there will be an excess supply in the near future.
B) supply disruptions may soon occur.
C) demand will decrease rapidly in the future.
D) supply will be stable in the near future.

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