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Basic Question 0 of 14
The insurance theory assumes that the futures curve ______
B. is in contango normally.
C. can fluctuate between contango and backwardation in the long term.
A. is in backwardation normally.
B. is in contango normally.
C. can fluctuate between contango and backwardation in the long term.
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You have a wonderful website and definitely should take some credit for your members' outstanding grades.
Colin Sampaleanu
Learning Outcome Statements
compare theories of commodity futures returns;
describe, calculate, and interpret the components of total return for a fully collateralized commodity futures contract;
contrast roll return in markets in contango and markets in backwardation;
CFA® 2025 Level II Curriculum, Volume 5, Module 33.