Question: Is the statement correct? (Uncertain/True/False) Provide a explanation for the statement. 1 Spot price of cotton is $3 and the 6-M forward price is $2.5.

Is the statement correct? (Uncertain/True/False) Provide a explanation for the statement.

1 Spot price of cotton is $3 and the 6-M forward price is $2.5. The convenience yield of holding cotton exceeds its storage costs.

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