Does the presence of a convenience yield necessarily imply the forward market will be in backwardation? Why

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Does the presence of a convenience yield necessarily imply the forward market will be in backwardation? Why or why not?

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Derivatives Principles And Practice

ISBN: 9780078034732

2nd Edition

Authors: Rangarajan Sundaram

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Question Posted: Jan 10, 2024 01:00 AM

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Does the presence of a convenience yield necessarily imply the forward market will be in backwardation? Why

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It depends on the size of the convenience yield Note t...View the full answer

Derivatives Principles And Practice

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