Cash & Carry Arbitrage - Forward Pricing

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This Video was recorded during a one of the CFA Classes in Pune by Mr. Utkarsh Jain.
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[@enjoy5381]

4:17 is great! Explains Cash and Carry well!

[@FintreeIndia]

thank you !

[@sdmartens22]

impressively well explained, thank you!

[@gulbengozu9232]

Really good explained! Thank you.

[@ramandeepbatti1798]

Thank you so much sir. It was very helpful 🥰🥰

[@Tradeformclaren720s]

thanks ! now I understand how it works

[@muhammedikramullah4406]

clear explanation ! thank you :)

[@vineetsharma5768]

what is risk free rate of interest?

[@fatimaalmadhi1727]

well explained thank you but I have a question, when do I know if it is cash and carry or a reverse arbitrage?

[@waseqomarkhan476]

I think that if the forward is overpriced, and you can make a profit by taking a long position, it is cash and carry and vice versa.

[@belkissbelal8105]

(y) grateful to you for the nice explanation :) it was really helpful

[@magnificencetv7424]

the concept that's fkin with me is in the reverse carry arbitrage. how on earth are u getting 100 from selling the asset in the spot? u even said u don't have but u'll sell it. so there can only be 2 cases. u've owned the asset earlier and sold it or borrowed money at Rf to sell it, the latter cancels out the arbitrage profit. so plz tell me how did u get the money or the asset to sell it in step 1 of "Today" transaction

[@homomanify]

Thx for the video... got a new subscriber!

[@adityakohli6266]

In the reverse cash n carry arbitrage how did we get the money? How did we short sell the stock when we didn't even have that

[@Tradeformclaren720s]

when you short sell a stock, your broker will lend it to you. The stock will come from the brokerage's own inventory, from another one of the firm's customers, or from another brokerage firm. The shares are sold and the proceeds are credited to your account. Sooner or later you must "close" the short by buying back the same number of shares (called "covering") and returning them to your broker. If the price drops, you can buy back the stock at the lower price and make a profit on the difference. If the price of the stock rises, you have to buy it back at the higher price, and you lose money.

[@akshaydm619]

I got a Doubt How do we sell when we don’t buy that asset underlying Is short selling done in reverse cash and carry ? And we have to find the theoretical price of the forward/future contract then compare with actual price to check if it is underpriced or over priced

[@Tradeformclaren720s]

You bought the stock ( underlying) then you have the obligation to sell the forward contract. (short ) For my understanding, We make profit when selling price is high , and cost is lower. Then we earn the arbitrage profit.

[@aleeee89-p5x]

hello, how can I find the cash e carry opportunities? is there a specific platform?

[@finotips]

noo bro...only theory

[@musicology108]

lol .. this guy's voice was clear as fuck.. I need him to teach in my university. revert me back if you are up to do it mr. professor

[@omprakashpandey5616]

When we short we will get the profit when the price of contract fall...

[@someshsasidharan4983]

Thankyou sir.

[@ravishetti87]

Wrong strategy ITC short 1 lot(1000 shares) ITC buy 1000 shares at the same price isn't possible, if only 200 shares are bought and price goes up Then its loss

[@JC-ce8uw]

excellent thankyou

[@samuelsteven7825]

Thank you but what if it is for 9months and not one year?

[@FintreeIndia]

+Samuel Steven If it's nine months , then the formula becomes F = Spot * (1+R)^0.75. The carrying cost is always adjusted for time period

[@samuelsteven7825]

Thanks....i appreciate

[@hussain23525]

Do u sell These online lecture

[@FintreeIndia]

Yes. You can buy Complete online course, get more info on www.fintreeindia.com/

[@luckiest18]

thank you SO much!!

[@sannyj80]

what accent , I can't concentrate

[@samadkazi1786]

Bhot bekar samjata hai tu