WebCab Options and Futures for COM v3.1

FuturesOnCommodities.ConvenienceYieldWithExplicitTime Method 

Calculates the convenience yield of a consumption commodity when the present value of the cost of storage is known.

public double ConvenienceYieldWithExplicitTime(
   double commodityPrice,
   double storageCosts,
   double riskFree,
   double futuresPrice,
   double timeToExpiry
);

Parameters

commodityPrice
The price of the underlying commodity.
storageCosts
Present value of the storage cost of the commodity during the life of the futures contract.
riskFree
Average risk free interest rate during the life of the futures contract given in decimal format (i.e. 1 percent = 0.01).
futuresPrice
Market price of a futures contract on the underlying commodity.
timeToExpiry
The time period (in years) until the above future contract expires.

Return Value

The convenience yield of the consumption commodity returned in decimal format (i.e. 1 percent = 0.01).

See Also

FuturesOnCommodities Class | WebCab.COM.Finance.Futures Namespace