contango F>S if the buyer believe the future spot price will increase, he will pay a premium to buy the future. Those situation occurs when the spot prices was increasing and volatile
Backwardation F<S if the buyer believe the future spot price will decrease, he will pay a discount to buy the future, which occurs when the spot prices was decreasing and volatile.
So for this question, take the way that the price at historic lows means the price was decreasing for a while now. | 
发表于 2010-6-3 17:29
|