Question
In equilibrium, the copper futures contract will be in backwardation When the storage cost is greater than the financing cost Never Always When the convenience
In equilibrium, the copper futures contract will be in backwardation
| When the storage cost is greater than the financing cost | ||
| Never | ||
| Always | ||
| When the convenience value is greater than (financing cost + storage cost) |
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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett
7th Edition
1259919714, 978-1259919718
