11-Which of the following terms most accurately describes the current forward cu

11-Which of the following terms most accurately describes the current forward curve for soybeans over the next two years?
(a) Contango
(b) Backwardation
(c) Contango and backwardatio
(d) None of the above
12- Explain how a negative correlation between agricultural production and commodity prices createsa natural hedge.
13- Why is the cash-and-carry strategy employed in the financial futures market not readily available in the commodity futures market?
23- The S&P 500 Index price is 1492.28 and its annualized dividend yield is 2.30%. LIBOR is .2%.
11-Which of the following terms most accurately describes the current forward curve for soybeans over the next two years?
(a) Contango
(b) Backwardation
(c) Contango and backwardatio
(d) None of the above
12- Explain how a negative correlation between agricultural production and commodity prices createsa natural hedge.
13- Why is the cash-and-carry strategy employed in the financial futures market not readily available in the commodity futures market?
23- The S&P 500 Index price is 1492.28 and its annualized dividend yield is 2.30%. LIBOR is .2%. How many futures contracts will you need to hedge a $240 million portfolio with a beta of 1.16 forone year? (Show your Work)11-Which of the following terms most accurately describes the current forward curve for soybeans over the next two years?
(a) Contango
(b) Backwardation
(c) Contango and backwardatio
(d) None of the above
12- Explain how a negative correlation between agricultural production and commodity prices createsa natural hedge.
13- Why is the cash-and-carry strategy employed in the financial futures market not readily available in the commodity futures market?
23- The S&P 500 Index price is 1492.28 and its annualized dividend yield is 2.30%. LIBOR is .2%. How many futures contracts will you need to hedge a $240 million portfolio with a beta of 1.16 forone year? (Show your Work)
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