CFA Practice Question

There are 195 practice questions for this study session.

CFA Practice Question

Currently, commodity markets are in contango. This means the roll yield on commodity indices is ______.
A. positive
B. negative
C. zero
Explanation: An investor would need to buy the commodity index above the current spot level when it's time to roll the contract.

User Contributed Comments 3

User Comment
nowornever this is from the investor point of view
cong Remember the shapes of the futures curves for both contango and backwardation
CodyR Doesn't the roll yield depends on if you're short or long?
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