FuturesOnCommodities.ConvenienceYieldWithProportionalCostsWithExplicitTime Method 

Returns the convenience yield of a consumption commodity when the storage costs as a proportion of the commodity price is known.

Parameters

commodityPrice

The price of the underlying commodity.

storageCosts

Storage costs as a proportion of the commodity price during the life of the contract.

riskFree

Continuously compounded risk free interest rate 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 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 | Futures Namespace