Question: a. Define and contrast contango and normal contango . (1.5 marks) b. Define and contrast backwardation and normal backwardation . (1.5 marks) c. Explain the

a. Define and contrast contango and normal contango. (1.5 marks)

b. Define and contrast backwardation and normal backwardation. (1.5 marks)

c. Explain the relationship between contango, cost-of-carry, and convenience yield. (2 marks)

d. Explain the relationship between backwardation, cost-of-carry, and convenience yield. (2 marks)

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