Question

Which of the following is true? Question 8 options: The convenience yield is always positive or zero. The convenience yield is always positive for an investment asset. The convenience yield is always negative for a consumption asset. The convenience yield measures the average return earned by holding futures contracts.

Answer 1

Answer:

The convenience yield is always positive or zero

Explanation:

the convenience fields measure the benefit of owning an asset rather than having a forward/futures contract on an asset . For an investment asset it is always zero . For a consumption asset it is greater than or equal to zero.