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NEW QUESTION: 1
A. 0
B. 1
C. 2
D. 3
Answer: D
NEW QUESTION: 2
Backwardation in commodity futures is explained by:
A. risk free rate or the cost of futures funding
B. contango
C. convenience yields
D. storage costs
Answer: C
Explanation:
Explanation
Backwardation is said to occur when futures prices are lower than the current spot prices. This would happen only when carrying costs are negative. Carrying costs are equal to interest, plus storage costs and less any
'convenience yield'. The existence of large convenience yields may explain backwardation in commodity futures prices. Therefore Choice 'd' is the correct answer.
Contango is the 'normal' market situation where forward prices are higher than spot prices. Storage costs explain contango, not backwardation. Risk free rates, or the cost of funding for the futures position, are always positive and do not explain backwardation.
NEW QUESTION: 3
Which two statements about the threat landscape of today's networks are true? (Choose two.)
A. The use of cloud services is creating definitive security perimeters.
B. Threat actors are now nation states and organized crime syndicates.
C. An increase use of Direct Internet Access leads to more VPN connections.
D. Attackers are now well-financed and extremely patient.
E. Victims of security attacks are random, violated by generic attacks.
Answer: D,E
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