The cost of carry, or net financing cost, to the purchaser of stock index futures refers to the brokerage commissions paid to the broker as a result of the purchase.

Question

Quizplus · Accepted Answer

The cost of carry, or net financing cost, refers to the cost associated with holding a position, such as interest expenses or lost interest on cash, and not to brokerage commissions.

The Cost of Carry, or Net Financing Cost, to the Purchaser