CoboCards App FAQ & Wishes Feedback
Language: English Language
Sign up for free  Login

This flashcard is just one of a free flashcard set. See all flashcards!

All main topics / Finance & Investment / Derivatives / Derivatives
Which of the following is true? 
A.The convenience yield is always positive or zero.
B.The convenience yield is always positive for an investment asset.
C.The convenience yield is always negative for a consumption asset.
D.The convenience yield measures the average return earned by holding futures contracts.
Answer: A

The convenience yield measures 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.
New comment
Flashcard info:
Author: CoboCards-User
Main topic: Finance & Investment
Topic: Derivatives
Published: 27.10.2015




Forgot password?
Deutsch  English