Answer: a higher number of futures contracts.

## Explanation When a futures market is in **contango**, the forward curve is upward sloping, meaning longer-dated futures contracts trade at higher prices than shorter-dated contracts. **Key concept:** In contango, when rolling forward expiring contracts, you need to buy **more contracts** to maintain the same dollar exposure because: - You're selling the expiring (cheaper) contracts - You're buying the new (more expensive) contracts - Since the new contracts are more expensive, you need more of them to maintain the same total dollar value exposure Therefore, the correct answer is **C: a higher number of futures contracts**.

Author: LeetQuiz Editorial Team