synthetic-commodity-positions

  1. Nicole Seaman

    P1.T3.22.22. Contango and backwardation in commodity futures

    Learning objectives: Compute the forward price of a commodity with storage costs. Explain how to create a synthetic commodity position and use it to explain the relationship between the forward price and the expected future spot price. Explain the impact of systematic and nonsystematic risk on...
    • Nicole Seaman
    • Thread
    • backwardation commodity-futures contango forward-prices future-spot-price nonsystemic-risk storage-costs synthetic-commodity-positions systematic-risk
    • Replies: 0
    • Forum: FRM® Practice Questions
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