答案中说base currency is in contango是怎么判断的？是否因为forwad points 6m> 1m?
Statement 2: All else being equal, the roll yield on this dynamic hedge at the forward contract’s maturity will be negative.
Statement 2 is correct.
To implement the hedge, Schwinn must sell CAD against the USD, which means buying USD, the base currency in CAD/USD quote. The base currency is in contango, meaning the base currency is trading at a forward premium
