derivatives

[archived_user]

What does this statement mean-
“The carry adjustment in a currency derivative contract is very similar to other carry models such as equity derivatives.”
Thanks

 

[archived_user]

Carry adjustment = carry benefit and carry cost. Carry benefit reduces the price of the contract, and carry cost increases the price of the contract. The statement is simply saying that you adjust the carry benefit/cost in a currency derivative the same way you would in equity derivatives.

 

[archived_user]

thanks

 

[archived_user]

EphemeralEternal wrote:
Carry adjustment = carry benefit and carry cost. Carry benefit reduces the price of the contract, and carry cost increases the price of the contract. The statement is simply saying that you adjust the carry benefit/cost in a currency derivative the same way you would in equity derivatives.

+1