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Suppose you see the price on a 1-month oil futures contract trading at $100, and the price on a 7-month oil futures contract at $98.

image text in transcribed Suppose you see the price on a 1-month oil futures contract trading at $100, and the price on a 7-month oil futures contract at $98. The interest rate is 6% annualized and storage costs for oil are 2% a year. Given these prices, what is the current convenience yield on oil

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