Answer: An increase in storage costs and a decrease in convenience yield

## Explanation According to the theory of storage, the futures price (F) is related to the spot price (S) by the formula: **F = S + Storage Costs - Convenience Yield** Where: - **Storage Costs** increase the futures price (positive relationship) - **Convenience Yield** decreases the futures price (negative relationship) To maximize the increase in futures contract price: - **Increase in storage costs** → Increases futures price - **Decrease in convenience yield** → Increases futures price (since it's subtracted) **Option B** combines both factors that increase futures price: - Increase in storage costs → Higher futures price - Decrease in convenience yield → Higher futures price **Option A** has conflicting effects: - Decrease in storage costs → Lower futures price - Decrease in convenience yield → Higher futures price **Option C** has conflicting effects: - Increase in storage costs → Higher futures price - Increase in convenience yield → Lower futures price Therefore, **Option B** provides the greatest increase in futures contract price as both factors work in the same direction to increase the futures price.

Author: LeetQuiz Editorial Team