CFA Practice Question

There are 178 practice questions for this topic.

CFA Practice Question

For a commodity, a backwardation occurs when:
A. there is a high risk-free rate.
B. there is a high storage cost.
C. there is a high convenience yield.
Explanation: When there is a high convenience yield the futures prices will be likely lower than the spot price.

User Contributed Comments 0

You need to log in first to add your comment.