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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 used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
describe features of commodities and their investment characteristics
analyze sources of risk, return, and diversification among natural resource investments
CFA® 2024 Level I Curriculum, Volume 5, Module 5.