Basis
A. will be weak (negative) if local supply today is abundant relative to the supply the market expects at maturation of the futures contract.
B. will be weak if local supply today is tight relative to the supply the market expects at maturation of the futures contract.
C. will be weak (negative) if current supply is tight relative to the supply the market expects at maturation of the futures contract.
D. will be stronger if the local market is further distant from the delivery location stipulated in the futures contract, other things being equal, and if the local market has excess supplies.
Ans: A. will be weak (negative) if local supply today is abundant relative to the supply the market expects at maturation of the futures contract.
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