Which of the following statements regarding the pricing of commodity futures contracts is most accurate?

A.

The arbitrage free price of a commodities futures contract is often lower than that of a financial security futures contract due to storage costs

B.

The convenience yield for a commodity is positively correlated with the futures price.

C.

The collateral yield on a commodity futures position is negative if the convenience yield is lower than the storage cost.

D.

Commodities that are subject to sudden and large demand shocks may exhibit backwardation in the futures market due to significant convenience yields.