Which of the following are reasons why commodities may have a negative basis?
I. storage costs
II. seasonal price fluctuations
III. transportation costs
IV. interest costs
A)I only
B)IV only
C)I and III only
D)I, II, and III only
E)I, II, III, and IV

Question

Quizplus · Accepted Answer

A negative basis in commodities can occur due to storage costs, seasonal price fluctuations, transportation costs, and interest costs. These factors can increase the spot price relative to the future price, leading to a negative basis.

Which of the Following Are Reasons Why Commodities May Have