l2 44 a primer on commodity investing

This class was created by Brainscape user Steven Popovic. Visit their profile to learn more about the creator.

Decks in this class (9)

a describe types of market participants in commodity futures markets;
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b explain storability and renewability in the context of commodities and determine whether a commodity is storable and/or renewable;
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c explain the convenience yield and how it relates to stock (inventory level) of a commodity;
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d distinguish among capital assets, store-of- value assets, and consumable or transferable assets and explain implications for valuation;
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e compare ways of participating in commodity markets, including advantages and disadvantages of each;
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f explain backwardation and contango in terms of spot and futures prices;
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g describe the components of return to a commodity futures and a portfolio of commodity futures;
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h explain how the sign of the roll return depends on the term structure of futures prices;
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i compare the insurance perspective, the hedging pressure hypothesis, and the theory of storage and their implications for futures prices and expected future spot prices.
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l2 44 a primer on commodity investing

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