What is the cost of carry here what is the convenience


The Price on a 1-year futures contract on a consumption asset is $1024.95/ unit while the spot price of the asset is at the same time $900/unit. The current level of the appropraite interest rate is 15%, while the storage cost is 5% per annum. A) What is the cost of carry here? What is the convenience yield ?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What is the cost of carry here what is the convenience
Reference No:- TGS02810677

Expected delivery within 24 Hours