Markets & Products P1: Cost of carry example P.45 in study notes

[Aleksander Hansen]

David,

On page 45 of your study notes you have a screenshot of some cost of carry calculations.
The latter two, especially the Hull from p. 89 of the GARP assigned reading, would be hard to follow and replicate less one has access to either the spreadsheets or the GARP material.

It also seems like the Hull example is missing the dividend info?

 

[David Harper CFA FRM]

Hi ahansen,

Yes I do agree (the PV of Income = $2.16 in bottom row is the PV of dividends in Hull 5.2, although it's not self explanatory) that the exhibit defies self-explanation: I guess I can add a general cost of carry "legend" to the top of the exibit. Same with page 51 COC calcs, I suppose those calcs could use similar legend. I will do that, thanks for the help!