So I understand that it’s higher when there’s more value in holding the underlying, but what exactly provides the non-monetary benefit?
It’s 3:00AM and you’re opening up your bakery to be ready with cinnamon rolls, croissants, muffins, and scones for the morning rush. You pop into pantry to pull out the flour to start the culinary process. You open the first sack and pour out onto the counter . . . flour?
No.
Flour futures contracts.
Your Yelp ratings plummet.
That’s convenience yield.
Haha you’re the man, thanks for the speedy and entertaining reply