FRM-FMP can you please ans this qustion

anbu.edu
Finance Junkie
Posts: 205
Joined: Mon Feb 04, 2013 3:35 pm

FRM-FMP can you please ans this qustion

Postby anbu.edu » Tue Mar 12, 2013 5:24 pm

Lisamaria Traina, FRM is short a series of copper futures contracts. At present, copper’s carrying cost is greater than the convenience yield. What should Traina do?

A) Deliver the contract at expiration.
B) Deliver when futures price and spot price converges.
C) Deliver the contract early.
D) Take the opposite position shortly before contract expiration.

If the answer is C then is it possible to deliver the contract earlier ? can D be correct answer

content.pristine
Finance Junkie
Posts: 356
Joined: Wed Apr 11, 2012 11:26 am

FRM-FMP can you please ans this qustion

Postby content.pristine » Thu Mar 14, 2013 7:50 pm

D looks like a better answer to me.
Can you please give me the source of the question?

anbu.edu
Finance Junkie
Posts: 205
Joined: Mon Feb 04, 2013 3:35 pm

FRM-FMP can you please ans this qustion

Postby anbu.edu » Fri Mar 15, 2013 11:48 pm

i got this question from Kaplan schweser notes.. the answer was D there


Return to “FRM Part I”



Disclaimer

Global Association of Risk Professionals, Inc. (GARP®) does not endorse, promote, review or warrant the accuracy of the products or services offered by EduPristine for FRM® related information, nor does it endorse any pass rates claimed by the provider. Further, GARP® is not responsible for any fees or costs paid by the user to EduPristine nor is GARP® responsible for any fees or costs of any person or entity providing any services to EduPristine Study Program. FRM®, GARP® and Global Association of Risk Professionals®, are trademarks owned by the Global Association of Risk Professionals, Inc

CFA Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by EduPristine. CFA Institute, CFA®, Claritas® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Utmost care has been taken to ensure that there is no copyright violation or infringement in any of our content. Still, in case you feel that there is any copyright violation of any kind please send a mail to abuse@edupristine.com and we will rectify it.