This note shows how the forward price, or, equivalently, the futures price is determined and considered forward and futures contracts written on financial assets and goods. The note introduces the concept of convenience yield and convenience expects output to four products, oil, natural gas, copper and gold. The examples in the note to use actual market prices. "Hide
by Walid Busaba, Zeigham Khokher, Saqib Khan Source: Richard Ivey School of Business Foundation 11 pages. Publication Date: March 14, 2008. Prod. #: 908N02-PDF-ENG