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Basic Question 2 of 7
For a non-perishable commodity that has a cost of carry, other things being equal, we should expect a ______ for its futures prices.
B. backwardation
C. forewardation
A. contango
B. backwardation
C. forewardation
User Contributed Comments 3
| User | Comment |
|---|---|
| abs013 | What is the cost of carry? |
| KYZKYZ | Cost of carry is nothing but the storage cost |
| khalifa92 | storage and interest |
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
describe features of commodities and their investment characteristics
analyze sources of risk, return, and diversification among natural resource investments
CFA® 2025 Level I Curriculum, Volume 5, Module 5.