Trading of a physical asset

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1. What is the term for the trading of a physical asset against it's futures price in order to earn a "risk-free" profit?

a. Spread

b. Option

c. Arbitrage

d. Swap

2. A market where futures prices are higher than spot prices is in a state of ____________.

a. Contango

b. Normal Backwardation

c. Inversion

d. Fluctuation

Reference no: EM133110088

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