Suppose there is 9-month forward premium for natural gas of, Ask an Expert

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Suppose there is 9-month forward premium for natural gas of 10% i.e. the forward price is 10% higher than the spot price. The risk-free rate 6% and the storage cost is paid continuously at 8%. What is the convenience yield for 9-month natural gas contract?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91568267

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