JAMB - Commerce (2025 - No. 29)

The charge paid by a speculator for non-settlement of his account within the specified period is
backwardation
brokerage
commission
contango

Explanation

The charge paid by a speculator for non-settlement of his account within the specified period is known as contango. Contango is a
situation where the futures price of a commodity is higher than the spot price. It is a fee paid by the buyer to the seller when the
buyer wishes to defer settlement of the deal they have made.

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