单选题

For a forward contract with a value of zero, a situation where the spot price is above the forward price is best explained by high:

A、 convenience yield.
B、 storage costs.
C、 interest rates.

【正确答案】 A

【答案解析】

If the convenience yield is high, holding the underlying confers large benefits, thus the spot price can exceed the forward orice for a forward contract with a value of zero. Based on the formula