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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Loren

15 days 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

16 days 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

25 days 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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