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QUESTION 21 How does the presence of a convenience yield typically impact the pricing of futures contracts for a consumption asset, such as such as oil, metals, or agricultural products? It has no effect on futures pricing. It tends to push futures prices higher It tends to push futures prices lower

QUESTION 21 How does the presence of a convenience yield typically impact the pricing of futures contracts for a consumption asset, such as such as oil, metals, or agricultural products? It has no effect on futures pricing. It tends to push futures prices higher It tends to push futures prices lower

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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QUESTION 21 How does the presence of a convenience yield typically impact the pricing of futures contracts for a consumption asset, such as such as oil, metals, or agricultural products? O It has no effect on futures pricing. It tends to push futures prices higher It tends to push futures prices lower
Transcribed Image Text:QUESTION 21 How does the presence of a convenience yield typically impact the pricing of futures contracts for a consumption asset, such as such as oil, metals, or agricultural products? O It has no effect on futures pricing. It tends to push futures prices higher It tends to push futures prices lower
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