mik82

I made this observation as well and let me give you this little factoid -- cash and carry shows up in the 2008 level 3 exam. Take a look at the morning session for the level 3, 2008 exam, question 6. It asks you to "COMPUTE ... profit on a reverse cash and carry arbitrage in the copper market". Note that the relevant LOS says (this is from the 2008 exam): a) discuss the unique pricing factors for commodity forwards and futures... b) identify and explain the arbitrage situations...

So, yeah. I had that same observation.

-=RB=-