- CFA Exams
- CFA Exam: Level II 2021
- Study Session 15. Alternative Investments
- Reading 42. Introduction to Commodities and Commodity Derivatives
- Subject 5. Spot and Futures Pricing
CFA Practice Question
If the futures market is in backwardation, there is likely a ______ calendar spread.
B. zero
C. positive
A. negative
B. zero
C. positive
Correct Answer: C
In such a market the near-term futures contract price is higher than the longer-term futures contract price.
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