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If you are an investor and the options market is normal, Contango and Basis are upward...

If you are an investor and the options market is normal, Contango and Basis are upward sloping; what kind of option will you buy?

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Answer :- In the situation mentioned in question, An investor should buy either a future contract or invest in an exchange traded fund (ETF). A future contract is an agreement between two parties to buy or sell an asset at a certain time in the future at a certain price. In future contracts all aspects of quality and quantity are standardised and those contracts are made through a organized exchanges in country. A future contract is legal, enforceable and highly standardized one. It can not be altered or changed later as per the requirement of parties to such contract.

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