Why should I choose AnalystNotes?
Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.
Basic Question 9 of 13
When the market is in backwardation, the roll yield will be ______ for a long investor.
B. positive
C. zero
A. negative
B. positive
C. zero
User Contributed Comments 1
| User | Comment |
|---|---|
| vatsal92 | Roll yield is the gains/losses that would be realized if spot price remains unchanged over the life of the contract. |
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
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.