question from cfai mock #25 am question, provided, please

Walex

can anyone please provide a better explanation than they provided… i thought backwardation was when the futures price was below (not above) the full carry price

IAmNeil

by carry price is that equivalent to the spot price?

svgleeson

full carry price is the spot adjusted for storage cost and convenience yield i believe… if you check out the problem you’ll see what i am talking about