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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

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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
18 days ago
C) II and III
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Kassandra
21 days ago
Hmm, I think it might be B) I and IV
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Tegan
24 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
10 days ago
User 3: So, it seems like option B (I and IV) is the right choice here.
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Evangelina
15 days ago
User 3: Yes, and the convenience yield would decrease as well
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Lucina
22 days ago
User 2: Yes, that makes sense. And the convenience yield would decrease as well.
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Dulce
29 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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