The cost of carry includes all of the following except A) Storage costs. B) Insurance. C) Current price. D) Financing costs. E) Risk free rate.

Question

Quizplus · Accepted Answer

The cost of carry is the cost associated with holding a physical commodity or financial asset over a period of time. It includes storage costs, insurance, financing costs, and the risk-free rate. However, the current price of the commodity or asset is not included in the cost of carry, as it is not a cost incurred by holding the asset but rather a market value that fluctuates independently.

The Cost of Carry Includes All of the Following except