CFA Practice Question

There are 195 practice questions for this study session.

CFA Practice Question

If a futures market is in contango, its roll return will be ______.
A. negative
B. positive
C. zero
Explanation: Commodity futures markets in contango exhibit price curves in which longer-dated futures prices are priced higher than near-dated contracts. With a higher futures price on the futures curve, rolling contracts forward in contango would require purchasing fewer contracts to maintain the same dollar position.

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