
Explanation:
When a commodity futures market is in contango, futures prices are higher than the spot price, resulting in an upward-sloping forward curve. This is because contango reflects expectations of higher future prices. A downward-sloping curve (Option A) is characteristic of backwardation, where futures prices are lower than the spot price. A flat curve (Option B) implies futures prices equal the spot price, which is inconsistent with contango.
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