forex

The following common approximation is valid when S is not too volatile : An example In short, assume that This would imply that one dollar i...

Interest rate parity, or sometimes incorrectly known as International Fisher effect, is an economic concept, expressed as a basic algebraic ...

The cost of carry is the cost of " carring " or holding a position. If long , the cost of carry is the cost of interest paid on a ...

A carrying charge is the cost of storing a physical commodity, such as grain or metals , over a period of time. The carrying charge includes...

Users of a consumption asset may obtain a benefit from physically holding the asset (as inventory ) prior to T (maturity) which is not obtai...

A convenience yield is an adjustment to the cost of carry in the non -arbitrage pricing formula for forward prices in markets with trading c...

The 2008-2009 Icelandic financial crisis has among its origins the undisciplined use of the carry trade. The US dollar and the yen have been...