Question
With the use of an example show how spot and forward prices are related and discuss how the following will impact the cost of carry:
With the use of an example show how spot and forward prices are related and discuss how the
following will impact the cost of carry:
(a) the risk free rate
(b) storage costs
(c) any disbursements obtained
(d) levels of inventory.
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Quantitative Investment Analysis
Authors: Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, David E. Runkle
3rd edition
111910422X, 978-1119104544, 1119104548, 978-1119104223
