Module 45.2 LOS 45.h: Contrast roll return in markets in contango and markets in backwardation
To hold the value of a long position constant, an investor must buy more contracts if the new longer-dated futures …
backwardation
Module 45.1 LOS 45.f: Theories of commodity future’s returns
The CFA recognized 3 theories of commodity returns that are based on the futures curve. The Insurance Theory states that …