Consider a one year fully collateralized commodity futures position on a commodity that experiences a 3 %

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Consider a one year fully collateralized commodity futures position on a commodity that experiences a

3 %

decline in its spot price. Over that same year, the basis in the commodity fell from the spot price exceeding the futures price by

5 %

to a basis of

2 % .

The riskless interest rate was

4 % .

What is the excess return of the futures contract?

(

The answer format is the x in x

%,

.

., 3

for

3 % .)

Posted Date: May 18, 2024 09:06 PM

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Consider a one year fully collateralized commodity futures position on a commodity that experiences a 3 %

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