Consider an oil swap in which you pay the floating price of oil in exchange for a fixed amount $A$ . The price of a new oil swap (i.e., the breakeven value $A$ ) increases when
A) The spot price of the commodity declines.
B) The convenience yield on the commodity increases.
C) Interest rates rise.
D) All of the above.

Question

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The Answer of Consider an oil swap in which you pay the floating price of oil in exchange for a fixed amount $A$ . The price of a new oil swap (i.e., the breakeven value $A$ ) increases when
A) The spot price of the commodity declines.
B) The convenience yield on the commodity increases.
C) Interest rates rise.
D) All of the above.

Consider an Oil Swap in Which You Pay the Floating AAA

Consider an Oil Swap in Which You Pay the Floating $A$