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Which of the following statements is an example of Contango? More than one answer is possible.
A) The current futures price of oil for delivery in six months is $60/barrel. The current spot price of oil is $50/barrel.
B) The current futures price of oil for delivery in six months is $60/barrel. The current spot price of oil is $70/barrel.
C) As the expiration date of a future contract on gold approaches, the future price decreases, but the spot price remains the same.
D) As the expiration date of a future contract on gold approaches, the future price increases, but the spot price remains the same.
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