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A commodity trader is researching factors that impact the prices of commodity futures contracts. In addition to the supply and demand dynamics, the advisor identifies storage costs, lease rates, and convenience yields as factors that can influence commodity futures prices. 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.