CFA Practice Question

There are 195 practice questions for this study session.

CFA Practice Question

When the market is in backwardation, the roll yield will be ______ for a long investor.

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.
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