Calculate the convenience yield on the commodity

Reference no: EM133368923

Question: A commodity has a spot price of $3650 and the four month futures price is $3545. The four month continuously compounded risk-free interest rate is 4.5 per cent per year. The storage costs for the commodity is 1.5 per cent per year continuously compounded. Calculate the convenience yield on the commodity. show the steps in detail

Reference no: EM133368923

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