CFA Practice Question

There are 195 practice questions for this study session.

CFA Practice Question

According to the hedging pressure theory, if the two forces of producers and consumers both seeking price protection are equal in weight, then one can envision the futures curve to be ______.

A. in backwardation
B. in contango
C. flat
Correct Answer: C

In this case their needs for price insurance offset each other perfectly.

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