A carrying costs involved in pricing physical futures, Ask an Expert

Finance

a) Carrying costs involved in pricing physical futures contracts are:

costs of storing the physical commodity only

opportunity costs of the investment only

costs of storing the physical commodity and opportunity costs of the investment

b) On the other hand, carrying costs involved in pricing financial futures contracts are:

costs of storing the financial contract only

opportunity costs of the investment only

costs of storing the financial contract and opportunity costs of the investment

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92639330

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