Which of the following is true?
A) The convenience yield is always positive or zero.
B) The convenience yield is always positive for an investment asset.
C) The convenience yield is always negative for a consumption asset.
D) The convenience yield measures the average return earned by holding futures contracts.

Question

Quizplus · Accepted Answer

The convenience yield measures the benefit of owning an asset rather than having a forward/futures contract on an asset.For an investment asset it is always zero.For a consumption asset it is greater than or equal to zero.

Which of the Following Is True