Financial Risk Manager Part 1
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In commodity markets, the complex relationships between spot and forward prices are embodied in the commodity price curve. Which of the following statements is true?
In commodity markets, the complex relationships between spot and forward prices are embodied in the commodity price curve. Which of the following statements is true?
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A
In a backwardation market, the discount in forward prices relative to the spot price represents a positive yield for the commodity supplier.
B
In a backwardation market, the discount in forward prices relative to the spot price represents a positive yield for the commodity consumer.
C
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