Question: Consider a commodity for which there are benefits obtained from ownership of the physical asset that are not obtained by owners of long futures contracts.

Consider a commodity for which there are benefits obtained from ownership of the physical asset that are not obtained by owners of long futures contracts. The ____________, which is the interest cost plus storage cost less the income earned is 5% and the spot price is $10. The futures price with a maturity of one year is $9.90. The _____________ yield is a parameter that reflects the benefit of owning the physical asset rather than the paper. The value of this parameter is approximately _________ cost of carry;

cost of carry; convenience; +11%

cost of carry; convenience; +6%

cost of carry; dividend; -6%

cost of carry; maturity; -11%

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