The payment made by a speculator to the buyer when he is unable to deliver stocks on the agreed date is?

By: |Published on: Dec 12|Categories: Commerce JAMB| 0 comments

A. arbitrage
B. franco
C. contango
D. backwardation

Correct Answer:

Option D – backwardation

Explanation

Backwardation is a percentage paid by a person selling stock for the right of delaying its delivery.

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