Ignoring convenience yields,the theoretical futures price for a commodity with a positive cost of carry should typically exhibit

Question

Quizplus · Accepted Answer

A positive cost of carry indicates that the futures price should be higher than the spot price to account for the costs of storage, financing, and other expenses. This results in a contango market, where futures prices increase with longer maturities.

Ignoring Convenience Yields,the Theoretical Futures Price for a Commodity with a Positive