Question
Why is roll return negative in contango?
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Answer
The next futures contract is more expensive than spot.
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Question
What does spot return measure in a commodity futures investment?
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Answer
The change in the commodity's spot price.
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Question
What generates collateral return in a commodity futures position?
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Answer
Interest earned on cash posted as margin.
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Question
What special return source makes timberland different from farmland and raw land?
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Answer
Biological tree growth adds return independent of market prices.
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