product_3b video tutorial

[sl]

Hi David,

Towards the end of the chapter 5 in topic 3 of the video tutorial, slide 53, while explaining the reason for backwardation, it seemed like your explanation ended abruptly. I just thought I'll bring it to your attention

Thanks
Sundeep

 

[David Harper CFA FRM]

Hi Sundeep,

Yes, I see that i cut myself off in edit. Apologies. Fortunately, I think I was rambling a bit and already made the point (I hope) that inverted forward curve (backwardation) could be explained by a high convenience yield (i.e., the intangible benefit, including optionality, of owning the commodity).

But THANK YOU for making the observation!

I hope all is well, including your studies! David