In schweser it says Contango is signfied by falling future prices!! Isn’t contango when the future price is greater than the spot price…so wouldn’t it be rising future prices?
Over time they have to converge or else there will be arbitrage.
miker2800 Wrote: ------------------------------------------------------- > In schweser it says Contango is signfied by > falling future prices!! Isn’t contango when the > future price is greater than the spot price…so > wouldn’t it be rising future prices? at expiration F = S -> spread is decreasing
Where does it say that in Schweser?
In the Q-Bank