Commodity Futures Pricing

question 9

Multiple Choice

Commodity futures pricing

• A)must be related to spot prices.
• B)includes cost of carry.
• C)converges to spot prices at maturity.
• D)All of these
• E)None of the options

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Definitions:

Currency Speculation

The act of buying, selling, or holding currencies with the expectation that their value will change to make a profit.

Merger Arbitrage

An investment strategy that aims to profit from the successful completion of mergers and acquisitions by trading the stocks of the companies involved.

Risk Profile

An evaluation of an individual's willingness and ability to take risks, as well as the risks associated with their investment assets.

Performance Evaluation

The assessment of how investments or portfolios have performed over time, considering factors like return, risk, and comparison to benchmarks.