Answer: a total return swap.

## Explanation **Total Return Swap (TRS)** is the most appropriate instrument for changing commodity allocation because: - **Total Return Swap** provides exposure to both price appreciation/depreciation and any income (such as dividends or interest) from the underlying asset - It allows investors to gain synthetic exposure to commodities without physically owning them - The swap receiver gets the total return of the commodity index, while paying a floating rate (typically LIBOR plus a spread) - This is ideal for portfolio managers wanting to adjust their commodity exposure **Other options:** - **Basis swap**: Used to hedge basis risk between different but related commodities - **Excess return swap**: Only provides exposure to price changes, not the total return Therefore, **B: a total return swap** is most appropriate for changing commodity allocation.

Author: LeetQuiz Editorial Team