CFA Practice Question

There are 195 practice questions for this study session.

CFA Practice Question

Assume an investor has $120 of exposure in corn futures. The near contract is worth $12 of exposure, and the investor has 10 contracts ($120/$12 = 10). The far contract is worth $10 of exposure. For the investor to roll forward his contracts to maintain the same level of exposure, how many far contracts does he need to purchase?
A. 8
B. 10
C. 12
Explanation: To maintain the $120 of exposure, he needs to purchase 12 contracts at $10 each (12 x $10 = $120).

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