The spot price for a barrel of oil is $54.60, while the futures contract for oil is trading at $54.70 per barrel. Moreov

[answerhappygod]

The spot price for a barrel of oil is $54.60, while the futures
contract for oil is trading at $54.70 per barrel. Moreover, the
spot price for an ounce of gold is $1474.4, while the futures
contract for gold is trading at $1469 per ounce. Both contracts are
for delivery in 3 months. Given that the 1 year treasury rate
(nominal interest rate) is 1.75%, find a) The net convenience yield
for oil, b) The net convenience yield for gold. c) What is the
significance of the convenience yield?