Learning Outcome Statements

1. Characteristics of Commodity Sectors

a. compare characteristics of commodity sectors;

2. Life Cycle of Commodities

b. compare the life cycle of commodity sectors from production through trading or consumption;

3. Valuation of Commodities

c. contrast the valuation of commodities with the valuation of equities and bonds;

4. Commodity Futures Market Participants

d. describe types of participants in commodity futures markets;

5. Spot and Futures Pricing

e. analyze the relationship between spot prices and expected future prices in markets in contango and markets in backwardation;

6. Futures Returns

f. compare theories of commodity futures returns;

g. describe, calculate, and interpret the components of total return for a fully collateralized commodity futures contract;

h. contrast roll return in markets in contango and markets in backwardation;
7. Commodity Swaps and Indexes

i. describe how commodity swaps are used to obtain or modify exposure to commodities;

j. describe how the construction of commodity indexes affects index returns.