Question: a) State the necessary conditions to identify a normal contango market. b) MG identified the market as normal backwardation and did the action accordingly. What

a) State the necessary conditions to identify a normal contango market. b) MG identified the market as normal backwardation and did the action accordingly. What condition they could have monitored to anticipate the contango volatility? c) Explain carefully why if you have an upward sloping basis curve in a backwardation market, you should take short position instead of a long one as the MG did.

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