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3. Which of the following is correct? When the forward curve is upwards sloping for a commodity: D A The storage costs for that commodity

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3. Which of the following is correct? When the forward curve is upwards sloping for a commodity: D A The storage costs for that commodity are larger than its convenience yield. B There is no storage cost for that commodity. The storage costs for that commodity are smaller than its convenience yield. D None of the options listed E The storage costs for that commodity are the same as its convenience yield. F I do not wish to answer this question 4. Consider an amortising foed-for-ficating 10-year interest rate swap where the forward curve is upwards sloping. Which of the following is TRUE? The fixed rate can be lower or higher than for a non-amortising fixed-for-Toating 10-year interest rate swap depending on the terms of the implicit loan. A B None of the options listed C The fixed rate will be lower than for a non-amortising fored-for-floating 10-year interest rate swap. D I do not wish to answer this question E The fixed rate will be the same as for a non-amortising fixed-for-floating 10-year interest rate swap. F The fixed rate will be higher than for a non-amortising foed-for-floating 10-year interest rate swap

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