Commodity Price Indexes Do NOT Have Which of the Following

question 9

Multiple Choice

Commodity price indexes do NOT have which of the following features?

• A) These indexes often use futures prices in index computation.
• B) As these indexes are weighted averages,they typically have a fairly heavy weighting in the energy sector.
• C) The managers of the index must periodically roll the futures index by replacing the expiring futures with similar new contracts.
• D) Many financial products have been devised based on these indexes.
• E) Exchange traded funds (ETFs)are futures that have been devised based on commodity price indexes.

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