Concept:In stock exchange dealings, contango is the charge paid by a bull buyer to postpone settlement of a share purchase to the next settlement or accounting period.
Explanation:A bull expects prices to rise and buys shares, but wishes to defer taking delivery or paying the full amount until the next accounting period.
The amount paid for this facility is called contango.
This fee is charged by the seller or carry-over broker for carrying the transaction forward.
Backwardation is different because it is paid by a bear seller who wants to postpone the delivery of shares.
Brokerage and commission are simply regular charges for executing a transaction, not for deferring it.
Answer:C. contango