Answer: C price of the near-term futures contract is above the price of the longer-term futures contract.

## Explanation If the calendar spread in the futures market is positive: - **The price of the near-term futures contract is above the price of the longer-term futures contract** - This is correct. A positive calendar spread means near-term futures trade at a premium to longer-term futures - **Spot price is above the price of the near-term futures contract** - This would indicate backwardation, not a positive calendar spread - **Spot price is above the price of the longer-term futures contract** - This is not the definition of a positive calendar spread A positive calendar spread occurs when near-term futures prices are higher than longer-term futures prices, which is characteristic of backwardation markets.

Author: LeetQuiz Editorial Team