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Commerce · The stock exchange

CommerceThe stock exchangeJAMB

The charge paid by a bull to carry over a transaction to the next settlement period is

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Answer: D. contango

Contango is paid by a buyer (bull) to postpone settlement; backwardation is paid by a seller (bear) for the same favour.

An AdmitMe practice question, written for the JAMB syllabus. Not an official past question.

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