Which of the Following Is True of Convenience Yield

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.