spreads

madoff, you're effin hilarious.

Great explanation btw

Perhaps a less relevant explanation would simply be:

While the current spot is $1.76 per 1 pound, i don't need 1 pound right now...i need 1 pound a year from now. In order to have that pound a year from now I only need to buy 1/1.062 pounds or .9416 pounds now, which at the current spot will cost me $1.6573 today.