CFA® Level II Alternative Investments - Pricing Commodity Futures: Concepts and Theories Explained скачать в хорошем качестве

CFA® Level II Alternative Investments - Pricing Commodity Futures: Concepts and Theories Explained

This is an excerpt from our comprehensive animation library for CFA candidates. For more materials to help you ace the CFA Exam, head on down to https://prepnuggets.com. --- What You’ll Learn: 1. Commodity Futures Basics: • Understand what a futures contract is and the obligations of the long and short positions. • Learn the difference between the spot price, futures price, basis, and calendar spread. 2. Market Conditions: • Explore the concepts of contango and backwardation, and how they affect futures pricing. 3. Theories Explaining Futures Pricing: • Insurance Theory: Understand why futures prices might be lower than spot prices due to producers seeking to hedge against price uncertainty. • Hedging Pressure Hypothesis: Learn how the hedging behaviors of both producers and users of commodities influence market conditions. • Theory of Storage: Discover how storage costs and convenience yield impact futures prices, leading to contango or backwardation. 4. Practical Applications: • Analyze the factors that drive futures markets into contango or backwardation and the implications for investors and traders. By the end of this lecture, you’ll have a comprehensive understanding of how commodity futures are priced, preparing you for your CFA Level II exams and enhancing your expertise in financial markets.