Question 10 (1 point) The two moze is 3.2% sehryzzzzs 93% What is the forward rate for the third yz. Alles ze cotonly composed 55% O 11.1% 8.7% 10,7% Page 10 of 38 Next Page Page Page 12 of 38 Question 12 (1 point) The basis is defined as spot minus futures. A trader is hedging the sale of an asset with a short futures position. The basis decreases (weakens) unexpectedly. Which of the following is true? The hedger's position sometimes worsens and sometimes improves The hedger's position sometimes worsens and sometimes improves The hedger's position improves The hedger's position worsens Previous Page Next Page Page 12 of 38 Previous Page Next Page Page 9 of 38 Question 9 (1 point) Saved When the futures market is in backwardation (i.e., inverted), the roll return will be for a short investor (i.e., an investor with short positions in short-dated futures contracts that are rolled forward). Zero Positive O What is a roll retum and backwardation? O Negative Page 9 of 38 Next Page Previous Page E