Reverse Cash- And- Carry Refers to Arbitrage in Which the Commodity

question 49

True/False

Reverse cash- and- carry refers to arbitrage in which the commodity is bought in the spot market and sold in the futures/forward market.

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Definitions:

Covariance

A measure of the degree to which two variables move together. In finance, it is used to measure how returns on two assets are related.

Regression Analysis

A statistical method used to examine the relationship between one dependent variable and one or more independent variables.

Slope

In mathematics and economics, the slope represents the rate at which a variable changes in relation to another variable, often depicted as the rise over run on a graph.

Beta

An indicator of the fluctuation or inherent risk of a security or portfolio compared to the overall market.