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As the Convenience Yield Increases,which of the Following Is True

Question 1

Multiple Choice

As the convenience yield increases,which of the following is true?


A) The one-year futures price as a percentage of the spot price increases
B) The one-year futures price as a percentage of the spot price decreases
C) The one-year futures price as a percentage of the spot price stays the same
D) Any of the above can happen

Correct Answer:

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