Cost of Carry Calculator


Cost of Carry Calculator helps user in calculating the fair value of a Futures contract. It can be used to spot possible arbitrage possibilities, in case the price in market deviates significantly from the theoretical price.

Various fields given in Cost of Carry Calculator are explained below:

  1. Spot Price- This field indicates the current market price of stock/index in the capital market.

  2. Interest Rate (%) - This field indicates Risk free Interest rate per annum in percentage terms.

  3. Days to Expire- This field indicates the days left in expiry of the stock/ index contract.

  4. Get Fair Price- Click on this button to get Fair Price of the contract as per the parameters provided by you in the above three fields.

  5. Reset- 'Reset' button is used to reset /empty all the fields.

Note! Formula Used = Fair Price of Future = Spot Price * Exp (Days to Expire/365) * (Interest Rate/100)

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