The payment made by a speculator to the buyer when he is unable to deliver...
COMMERCE
JAMB 2023
The payment made by a speculator to the buyer when he is unable to deliver stocks on the agreed date is
- A. contango
- B. arbitrage
- C. backwardation
- D. franco
Correct Answer: C. backwardation
Explanation
Backwardation is a percentage paid by a person selling stock for the right of delaying its delivery.
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