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A 'short squeeze' refers to a situation where

A 'short squeeze' refers to a situation where

A.

a sharp increase in spot prices due to a shortage in the spot market as shorts try to cover their positions

B.

a sharp drop in spot prices as shorts try to drive down prices

C.

sharp swings in forward basis caused due to normal market movements

D.

an increase in forward prices due to factors underlying a contango market overwhelming the factors that take the market into backwardation

PRMIA 8006 Summary

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  • Product: 8006
  • Update on: Jul 29, 2025
  • Questions: 287
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