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Which of the following would an intern correctly describe as a characteristic of an inverted futures market for a commodity?
A
In an inverted market, the price of a longer-term futures contract is lower than the price of a shorter-term futures contract.
B
In an inverted market, the price of a longer-term futures contract is higher than the price of a shorter-term futures contract.
C
In an inverted market, the price of the futures contract is lower than the spot price of the underlying asset.
D
In an inverted market, the price of the futures contract is higher than the spot price of the underlying asset.
