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 made up of storage costs, insurance, financing costs, and the risk-free rate. The current price is not a component of the cost of carry, as it is the price at which the asset is currently trading and not a cost associated with owning it.

The Cost of Carry Includes All of the Following EXCEPT