Can this model , where R is constant and future price is given by a line having constant upward slope, be straightway applied to a consumption commodity where cost of storage is much higher than convenience yield. Obviously, such a scenario may provide huge arbitrage opportunity between short future market and long spot market, so is unsustainable. Therefore, (r+c-y) is also a variable in such a scenario and the slope of the future curve should be continuously reducing. It will be highly appreciated if you can share a video showing calculation of function (r+c-y) in case of commodities having high storage cost.
Can this model , where R is constant and future price is given by a line having constant upward slope, be straightway applied to a consumption commodity where cost of storage is much higher than convenience yield. Obviously, such a scenario may provide huge arbitrage opportunity between short future market and long spot market, so is unsustainable. Therefore, (r+c-y) is also a variable in such a scenario and the slope of the future curve should be continuously reducing. It will be highly appreciated if you can share a video showing calculation of function (r+c-y) in case of commodities having high storage cost.
Why you did not calculate CC equivalent of 1% dividend yield in the fifth example?
Because it's assumed (in the case) to be given as a 1.0% continuous yield, per my statement at ~16:12