CFA Practice Question
Which of the three distinct sources of return is close to the T-bill return?
B. Roll yield
C. Spot price return
A. Collateral yield
B. Roll yield
C. Spot price return
Correct Answer: A
It is the return on cash used as a margin to take long derivatives exposure. The roll yield is also called the convenience yield.
User Contributed Comments 1
User | Comment |
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vatsal92 | T-bill is a collateral. |