Similarly, in case of financial assets, the cost of carry
includes interest and dividends.
Economics of Trading Futures under the Cost of Carry Model
One such market is single stock futures and, as OneChicago states, prices should equal their net cost of carry value.
In all cases, the perfectly hedged portfolio will earn the risk-less (net) cost of carry return.
Tt] denote the portfolio's profit, the change in the spot price, the spot asset cost of carry, and the change in the maturity-date-T futures contract price, respectively, from time t to t+1.
Despite the similarities noted above, the cost of carry and ECM disequilibrium interpretations are incompatible.
However, reinterpret the spot price as the spot price inclusive of the cost of carry to the futures contract maturity in Equation (4) and denote this version as the MECM.
Sellers of every kind of property -- from top-flight mixed use property to operating hotels and development land - are finding auctions are the most efficient way to move property while minimizing the cost of carry
and maximizing return.
The study cites decreased elapsed time between locking/funding loans, compressed funding cycles, improved secondary market pricing and reduced cost of carry
The strength of the primary market for speculative grade bonds is certainly working in favor of high yield companies by enabling them to reduce the cost of carry
on high levels of debt while waiting for revenue and cash flow to rebound.
In selecting LYONs, we decided to capitalize on the strong demand in the convertibles market as an opportunistic borrowing and leverage our strong financial position with relatively inexpensive capital at attractive terms while maintaining conservative financial ratios and a negative cost of carry
We decided to capitalize on the strong demand in the convertibles market as an opportunistic borrowing which provides an opportunity to leverage our financial position with relatively inexpensive capital at attractive terms while maintaining conservative financial ratios and a negative cost of carry