Multiple Choice
If there is a convenience yield,then the following is true of the forward price:
A) The forward price is higher than it would be if there were no convenience yield.
B) The bid price may be higher than the ask price on the forward.
C) The forward price does not depend on the convenience yield.
D) The forward price is lower than it would be with no convenience yield.
Correct Answer:
Verified
Correct Answer:
Verified
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