What are the “usual” situations ? - Cantago: S0 < F - Normal backwardation: F < E(S1) Is that correct?
mhannebert Wrote: ------------------------------------------------------- > What are the “usual” situations ? > > - Cantago: S0 < F > - Normal backwardation: F < E(S1) > > Is that correct? you are correct
and what is the reasoning behing F < E(S1) … i mean why is it “usual” … remember ?
Is it buyers taking on risk?
yep i think i remember now, i guess you can either say its the price you pay to hedge , or the reward you get to take the risk of not knowing the future price
Niblita75 Wrote: ------------------------------------------------------- > Is it buyers taking on risk? yes