AAFM Exam CWM_LEVEL_2 Topic 7 Question 79 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam

Question #: 79
Topic #: 7

[All CWM_LEVEL_2 Questions]

Section B (2 Mark)

If the commodity's futures price declines

AI and III

BI and IV

CII and III

DII and IV

Show Suggested Answer

Suggested Answer: C

by Ben at May 31, 2024, 05:47 PM

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Salome

1 months ago

Option D seems like the best choice to me. If the futures price declines, the spot price would also decline, and the convenience yield would decrease. But I'm not 100% sure.

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Michael

1 months ago

Haha, this question is like a riddle! I'm going to have to think it through carefully to avoid making a silly mistake.

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Anika

17 days ago

C) II and III

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Kassandra

20 days ago

Hmm, I think it might be B) I and IV

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Tegan

23 days ago

A) I and III

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Loren

2 months ago

I'm not sure about this one. The question is a bit confusing, and the options don't seem to clearly explain the relationship between the futures price, spot price, and convenience yield.

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Mitsue

2 months ago

Option B seems like the correct answer here. If the commodity's futures price declines, the spot price of the commodity would also decline, and the convenience yield would decrease.

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Melynda

9 days ago

User 3: So, it seems like option B (I and IV) is the right choice here.

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Evangelina

14 days ago

User 3: Yes, and the convenience yield would decrease as well

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Lucina

21 days ago

User 2: Yes, that makes sense. And the convenience yield would decrease as well.

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Dulce

28 days ago

User 2: I agree, if the futures price declines, the spot price would also go down

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Lea

1 months ago

User 1: I think option B is correct because if the futures price declines, the spot price of the commodity would also decline.

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Shoshana

1 months ago

User 1: I think the answer is B) I and IV

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Loren

2 months ago

I'm not sure, but I think the answer might be B) I and IV because a decline in futures price could also affect the cost of carry and the convenience yield.

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Gerald

2 months ago

I agree with Vanesa. A) I and III make sense because a decline in futures price would impact both spot price and convenience yield.

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Vanesa

3 months ago

I think the answer is A) I and III because if the commodity's futures price declines, it would affect both the spot price and the convenience yield.

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