Question
The spot price of copper is $3.18 per pound. The present value of the cost to store a pound of copper for one year is
The spot price of copper is $3.18 per pound. The present value of the cost to store a pound of copper for one year is $0.05. The risk-free interest rate is 4.1% per annum, continuously compounded, and the one-year futures price of copper is $3.09. What is the convenience yield (in percent)?
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Financial Sector Reform And Privatization In Transition Economies
Authors: John Doukas, Victor Murinde, Clas Wihlborg
1st Edition
044482653X, 9780444826534
