Convenience yield

The profit, taking into account storage costs, to be gained from holding a good in readiness – i.e., having it in stock today – rather than having to procure it for use in the business or for sale to the customer (the extra advantage that firms derive from holding the product rather than the future). – See option, commodity forward contract, replacement risk.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
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