CFA Practice Question

CFA Practice Question

Which of the following is incorrect?
A. In Backwardation the prices for near future delivery are lower than prices for delivery farther in the future.
B. Euribor is the reference rate for euro-denominated forward rate agreements, short term interest rate futures contracts and interest rate swaps.
C. In Contango the prices for future delivery are higher than spot prices.
Explanation: In Backwardation the prices for near future delivery are higher than prices for delivery farther in the future.

User Contributed Comments 3

User Comment
Sandar any idea?
jann just means in backwardation prices for futures are lower than spot
davcer near future and farther future, same as spot vs future, spot prices are higher in backwardation
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