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Alternative Investments
Alternative Investments
Medium
A commodity futures market is in contango. An investor who maintains a long position by rolling expiring contracts into the next month will most likely experience:
A
Negative roll yield because the next-month contract is more expensive
B
Positive roll yield because the next-month contract is cheaper
C
Zero roll yield because contango only affects spot prices
D
Positive roll yield because contango indicates strong demand
Select an answer to continue
Tags
#contango
#roll-yield
#commodity-futures
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