Calculate theoretical forward and futures price using cost of carry model. Account for financing costs, storage costs, convenience yield, and dividends.
Calculate theoretical forward and futures price using cost of carry model. Account for financing costs, storage costs, convenience yield, and dividends
Each component has a specific meaning:
Note: Interpret the forward price cost of carry result against the thresholds and context described above.
Enter the cost of carry model for the scenario you are assessing. Calculate theoretical forward and futures price using cost of carry model. Account for financing costs, storage costs, convenience yield, and dividends. Use the forward price cost of carry result to inform your calculation.