Normal Backwardation

[Bruno]

Hi David,

I think there is a typo on page 25 (last paragraph):


Normal backwardation is when the when the futures price exceeds the expected future spot price.


From the top of the page, I understand that normal backwardation is when the futures price IS LESS THAN the expected future spot price.

Best regards,

 

[David Harper CFA FRM]

Yes, thank you, i think you are the fourth person to notice so I am becoming quite familiar (chagrined?) with this typo David

 

[Bruno]

Sorry, I didn't notice that it was already posted.
br,

 

[David Harper CFA FRM]

No way, it's total help...i didn't mean to discourage....i really appreciate it
(plus you showed me the forum entry can use color, which i had been ignoring!)
- David