CFA Practice Question

There are 195 practice questions for this study session.

CFA Practice Question

Under the storage hypothesis, commodities that are stored regularly should be ______.

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

If the storage cost of a commodity is high, it should have a higher price in the future.

User Contributed Comments 1

User Comment
krunk backwardation could be a signal of current shortage of the commodity, so would fall within the context of global supply and demand.
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