• Positive storage cost and no convenience yield imply that the cost of carry is positive, so the forward curve is most likely in contango.
• Positive systematic risk (beta > 0) implies a positive risk premium for holding the commodity. In Hull’s framework, this tends to make the futures price below the expected future spot price, which is normal backwardation.

Therefore, the observed curve is contango, and the relationship between futures price and expected future spot price is normal backwardation.

Correct answer: B.