Evaluate each factor using Hull’s cost-of-carry and risk-premium logic:

• I. Increase in storage cost → increases carrying cost, so the futures price tends to increase.
• II. Increase in convenience yield → reduces net cost of carry, so the futures price tends to decrease.
• III. Increase in systematic risk → increases the required risk premium; for a commodity with positive beta, this tends to lower the futures price relative to expected spot.
• IV. Increase in idiosyncratic risk → does not affect price under CAPM, because only systematic risk is priced.

Therefore, only I tends to increase the futures price.

Correct answer: A.