2009 CFA Exam Q8 A

Roll return - why it is unchanged? How do we know that factors for roll return are offsetting?

can you please stop calling the 2009 actual exam a MOCK!

what does roll return imply?

Roll Return = (Futures Change) - (Spot Change)

Both parts increase – given the statements in the question. (So ideally answer should have been “Cannot say” or “unclear”).

can you please SEE the actual post before writing! where did I say mock ?

CPK in a magician …he changed it :))

It was MOCK - I changed it…

cpk do you have access to our First and Last names also :wink: ?

No …

“cost-of-carry model” is the buzz word to use while answering…i forgot unless i saw the ans…


What are the differences between

  • cost-of-carry model
  • cash and carry model

good one…

I don’t think much difference except in cost of carry you may physically carry untill expiration. Like commodity, that’s why we talk about convenicne yield © or storage cost (lamda)

cash & carry - may be related to cash settled future or forward market??