标题: Test your knowledge ... [打印本页] 作者: dotamasta 时间: 2013-8-8 10:12 标题: Test your knowledge ...
Is buying commodity futures called direct investment in commodities or indirect investment in commodities ?
Have fun 作者: bulosehi 时间: 2013-8-8 10:18
Tricky one…I will side with direct.作者: SkipE99 时间: 2013-8-8 10:28
^don’t talk like a politician (double hedging), which one?? 作者: d2rockstar 时间: 2013-8-8 10:33
If I had to call it, I would say Direct.作者: jbaldyga 时间: 2013-8-8 10:40
i’d say direct.作者: Viceroy 时间: 2013-8-8 10:47
I am going to say indirect.
At t=now you do not directly own the commodity. You have a contract to purchase it.作者: jarobi04 时间: 2013-8-8 10:51
I’ll go with direct, indirect would be something like investing in an oil & gas co/miner’s equity?
I read this like a week ago, it’s already a distant memory!作者: iteracom 时间: 2013-8-8 10:54
So what is the answer ? I’ don’t have my books with me作者: hoangvu90 时间: 2013-8-8 10:58
I recall the reading and I remember being confused.
…derivatives are considered direct investment in commodities.
I just now grasp the concept that buying a company that deals in the commodity is indirect vs. owning the commodity or a derivative on the commodity = direct.
it is like a light bulb just went off. silly los, I hope it is tested.作者: AndyNZ 时间: 2013-8-8 11:01
What is actually buying the wheat? Really direct?作者: eoin 时间: 2013-8-8 11:05
I agree with clouiscar’s explanation.
Futures provide direct investing. Buying a share of a company that invests in commodities would be indirect investment.作者: kkn006 时间: 2013-8-8 11:09
Good question…and great way to think about it Maratkus作者: eoin 时间: 2013-8-8 11:12
From my notes:
Direct: Entails cash market purchase of physical commodities, or exposure to changes in spot market values via derivatives, such as forwards and futures
Indirect: Involves the acquisition of indirect claims on commodities, such as equity in companies specializing in commodity production (i.e. buying a share of BHP, SQM)作者: d2rockstar 时间: 2013-8-8 11:26
very good question GOSETGO but im gonna have to go with direct.作者: IAmNeil 时间: 2013-8-8 11:37
Direct.
Indirect would be investing in a company that creates or processes the commodity; e.g., mining, oil refining, farming.
(Interestingly, before I got to Stalla several years ago (as Level III Curriculum Manager), they had this wrong: they classified it as indirect.)作者: chunty 时间: 2013-8-8 11:41
Hmm.. how relevant is ths in real world? Doesn’t matter if its direct or indirect.
