The futures prices are above the current spot price

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Reference no: EM131063106

Consider the futures markets for crude oil, heating oil and unleaded gasoline. Assume that you are considering futures contracts with 6 months to maturity.

a) Explain why we sometimes see that the futures prices are above the current spot price, and why we at other times see futures prices below the current spot price. What do we call these price patterns?

Reference no: EM131063106

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