Commodity and commodity deviatives

CFA Level II Alternative Investments
#1

Hi everyone.

i would like to ask if I hv a commodity derivative contract and now want to roll over it e.g. Futures price is 100 and spot price is 120, may I know in this case, wt is my spot yield? Wt additional info do I need in order to get the spot yield?

Thanks!!!

Karen

#2

The spot yield is the difference between the spot price when you roll over the contract and the spot price when you entered the contract.