The convenience yield is likely to be high when:

Select one:

a. a commodity faces low spot demand and expected future under-supply.

b. a commodity faces high spot demand and expected future over-supply.

c. an investment asset faces low spot demand and expected future under-supply.

d. an investment asset faces high spot demand and expected future over-supply.

For commodities, which of the following is true?

Select one:

a. Forward prices are always equal to the futures price minus the margin call

b. Forward prices are always equal to the futures price plus the margin call

c. Futures prices are always equal to the present value of the forward price

d. None of the above