Meaning of cost-of-carry in English:



  • The difference between the cost and the financial benefit of holding a particular asset for a specified period.

    ‘Barring a few exceptions, the cost-of-carry has not influenced prices in the way it is supposed to.’
    • ‘The implied cost-of-carry, based on the last day of trading, works out to around 5.50 per cent.’
    • ‘In the cost-of-carry formula the spot price shown is for immediate delivery.’
    • ‘We provide an analytical discussion of the optimal hedge ratio under discrepancies between the futures market price and its theoretical valuation according to the cost-of-carry model.’