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The convenience yield for a futures contract on a consumption commodity is low when Group of answer choices (A) it is not convenient to use

The convenience yield for a futures contract on a consumption commodity is low when

Group of answer choices

(A) it is not convenient to use the commodity for production purposes.

(B) the probability is low that the spot market in the commodity will experience shortages in the near future, because production options have low value in that scenario.

(C) the probability is high that the spot market in the commodity will experience shortages in the near future, because production options have high value in that scenario.

(D) the futures price is lower than the spot price for the commodity.

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