The spot price of a commodity is $50 per unit. The continuously compounded interest rate is 6%,

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The spot price of a commodity is $50 per unit. The continuously compounded interest rate is 6%, the storage costs are 0.5% of the price of asset per annum (continuously compounded).

If the 1-year forward price is $52.695, what is the convenience yield?

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Derivatives Markets

ISBN: 978-0321543080

4th edition

Authors: Rober L. Macdonald

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Posted Date: Apr 17, 2023 12:33 AM

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The spot price of a commodity is $50 per unit. The continuously compounded interest rate is 6%,

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Derivatives Markets

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