The spot price of copper is $3.50 per pound. The carry cost for copper is 3.2% and

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The spot price of copper is $3.50 per pound. The carry cost for copper is 3.2% and the current risk free rate is 2.2%, both rates are annual with continuous compounding for 6 months. The future price is $3.55 for delivery in 6 months.

What is the convenience yield of copper?

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Valuation The Art and Science of Corporate Investment Decisions

ISBN: 978-0133479522

3rd edition

Authors: Sheridan Titman, John D. Martin

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Posted Date: Jul 25, 2023 06:08 AM

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The spot price of copper is $3.50 per pound. The carry cost for copper is 3.2% and

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To calculate the convenience yield of copper we can use the formula for commodity futures pricing wh... View the full answer

Valuation The Art and Science of Corporate Investment Decisions

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