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NEW QUESTION: 1
Backwardation can happen in markets where
A. convenience yield is less than the total interest and carrying costs
B. convenience yields are greater than the total interest, storage and other carrying costs
C. convenience yields are positive
D. convenience yields are zero
Answer: B
Explanation:
Explanation
Convenience yield is the benefit from having access to the commodity - and if the convenience yield is very high, for example in a market where manufacturers must never run out of a particular raw material, then these can switch the total cost of carry (which include interest and storage costs, less convenience yields) to being negative. This causes forward prices to become lower than spot prices, a phenomenon known as backwardation.
Therefore Choice 'b' is the correct answer. If convenience yields are less than other carrying costs, then backwardation will not happen. The sign of convenience yields does not matter, what matters is their relative magnitude when compared to the other costs of carry.
To understand this in an intuitive way, consider that forward prices are nothing but spot prices, plus interest, plus storage costs, less convenience yields. If interest and storage costs are less than the convenience yield, the market will be backwarded.

NEW QUESTION: 2
A user takes an IP phone from one office to another and just called you to inform that the phone does not work in the new location. Which three things should you check to resolve the issue? (Choose three)
A. Make sure that physical locations are properly assigned under device pools.
B. Recreate the phone under a new cluster.
C. Reconfigure the remote destination profile.
D. Check whether the phone is registered under a different MAC address.
E. Make sure that the device mobility information contains the correct IP subnet information.
F. Make sure that the device pool is assigned to a device mobility group.
G. Check the local DHCP information for possible clues.
Answer: A,E,G

NEW QUESTION: 3
What is the correct order of steps to change the partition table using fdisk?
A. Start fdisk > Change the partition table > Write the partition table to floppy disk or USB stick > Exit fdisk > Boot from floppy disk or USB stick.
B. Start fdisk > Change the partition table > Write the partition table to hard disk > Exit fdisk > Load the partition table from the boot prompt.
C. You can't use fdisk to change a partition table.
D. Start fdisk > Change the partition table > Write the partition table to hard disk > Exit fdisk > Reboot.
Answer: D