Financial Risk Manager Part 1
Get started today
Ultimate access to all questions.
Comments
Loading comments...
Ultimate access to all questions.
Which of the following statements best describes one of these factors?
A
Storage cost is the main factor influencing the prices of long-term commodity futures contracts on industrial metals.
B
Lease rates on commodities are typically equal to the relevant risk-free interest rate and have a lower bound of zero.
C
Storage costs of agricultural commodities cause futures prices to display a mixture of normal and inverted pricing patterns.
D
Convenience yield is a charge subtracted from the lease rate by the lender of a commodity.