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Which of the following is true: Commodity futures price: a. Is related to spot price through borrowing cost and convenience yield b. Increases relative to
Which of the following is true:
Commodity futures price:
a. | Is related to spot price through borrowing cost and convenience yield | |
b. | Increases relative to spot price if storage cost decreases | |
c. | Converges to basis at maturity | |
d. | Increases relative to spot price if the borrowing cost decreases |
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