Suppose there is 18-month forward premium for oil of 10% I.e. The forward price is 10% higher than the spot price. The risk-free rate is 3.5% and the storage cost is paid continuously at 7.75%. What is the convenience yield for the 18-month natural gas contract?

; Close Window Qmuesummvm" 2 What" questionwiu savethis response. 0% higher than the spoi price. The risk-free rate is 3.5% and the stcrage cost is paid cantinuously at lm. m is 13-month forward premium for oil of 10% ie. the forward price is 1 Me vida for the 18-month natural gas contract? Um ' 023QB6 gig": 33453'0 Imam; to anmher quesuon mu save this. responae. ammo" g ogg Close Window