Construct · 1 fields · 1 citations

carry: a standalone construct

One name. One construct. A landmark on the map.

● anchor · a standalone construct Nearest construct by meaning·not indexed
carry1 CONSTRUCTCarry (finance)COST OF CARRY

A single standalone construct; nearby constructs are located against it in the Collider. Tap a field for its definition, unit, and measures.

Finance

The net cost or yield of holding a position

In finance, carry is the net return from simply holding an asset or position over time: the income it throws off (interest, dividends, convenience yield) minus the cost of financing and storing it. The cost of carry links an asset's spot and forward prices, and the carry trade borrows in a low-yielding currency or instrument to hold a higher-yielding one, earning the difference while bearing the risk of a reversal. Hull's standard derivatives text develops the cost-of-carry relationship. The referent is a rate of gain or loss from holding, unrelated to the digit a computer passes along when adding.[1]

Unit
The net yield-minus-cost rate from holding a position over time
Recovery means
Not applicable
Measured by
Computed as income and convenience yield minus financing and storage cost, implied by the spot-to-forward price gap

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Nearby constructs

bearing1 fields · 1 citationsanchor · a standalone constructcircuit1 fields · 1 citationsanchor · a standalone constructhull1 fields · 1 citationsanchor · a standalone construct

References

  1. Hull, J. C. (2008). Options, futures, and other derivatives (7th ed.). Pearson Prentice Hall. ISBN 9780136015864

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