This note shows how a forward price, or equivalent futures price is determined and holds futures contracts on financial assets and commodities written. The note is the concept of convenience yield and calculates the convenience yields on four commodities, crude oil, natural gas, copper and gold. Examples in the note using actual market prices.

This note shows how a forward price, or equivalent futures price is determined and holds futures contracts on financial assets and commodities written. The note is the concept of convenience yield and calculates the convenience yields on four commodities, crude oil, natural gas, copper and gold. Examples in the note using actual market prices.
«Hide

from
Walid Busaba,
Zeigham Khokher,
Saqib Khan
Source: Ivey Publishing
11 pages.
Release Date: 14 March 2008. Prod #: 908N02-PDF-ENG
An integrated approach to determine the forward prices HBR case solution