Suppose the convenience yield is close to zero for maturities up to six months, then spikes up
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Suppose the convenience yield is close to zero for maturities up to six months, then spikes up for the forward period between six and nine months, and then drops back to zero thereafter. What does the oil market seem to be saying about political conditions in the oil-producing countries?
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The convenience yield is a term used in the pricing of futures contracts It is an implied yield that ...View the full answer
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