CFA Practice Question
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
Correct Answer: B
The long investor can buy the commodity below the current spot level from a hedger.
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. |