Question: Answer multiple choice question pictured below The spot price for oil is $50 per barrel, while the one-month futures settlement price is $60 per barrel.

Answer multiple choice question pictured below

The spot price for oil is $50 per barrel, while the one-month futures settlement price is $60 per barrel. Which of the following statements is true? The oil market is in contango The oil market is in backwardation It is certain that the spot price in one month will be $60 It is an unusual situation because typically the futures price equals the spot price

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