Which of the Following Is True of Convenience Yield

question 9

Multiple Choice

Which of the following is true of convenience yield?

• A)It is the benefit or premium from holding a financial instrument such as forward contracts and options.
• B)It is the benefit from holding an inventory of the commodity net of its direct storage costs.
• C)Convenience yields affect forward or futures hedge ratios when the maturity of the future obligation hedged matches the maturity of the futures or forward contract used to hedge.
• D)The futures or forward contracts used to hedge the commodity would not vary depending on the date of the future obligation.

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Definitions:

Positive Psychological Capacities

Traits or mental abilities that contribute to a person's overall psychological wellbeing and positive demeanor.

Authentic Leadership

A leadership style in which the leader is true to themselves while leading, possessing awareness, transparency, integrity, and ethics.

Oral Reasoning

The process of thinking and expressing thoughts verbally, often used to solve problems or articulate ideas.

Self-Awareness

The conscious knowledge of one's own character, feelings, motives, and desires.