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The current spot price of silver is $25.1 per ounce and the ten-month silver futures price is $24.52 per barrel. The proportional storage cost of
The current spot price of silver is $25.1 per ounce and the ten-month silver futures price is $24.52 per barrel. The proportional storage cost of silver is 2.5% per annum with continuous compounding. The interest rate is 1.5% per annum for all maturities with continuous compounding. What is the current convenience yield? (Your answer should be in decimals and accurate to three decimal places, i.e. 5.4% should be written as 0.054)
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