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Futures fair price (cost of carry)Analyst

Theoretical futures price from spot, rates and carry.

What you’ll enter

  • Spot price
  • Risk-free rate
  • Dividend or income yield
  • Time to expiry
  • Market futures price (optional)

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The formula

F = S × e^((r − q) × T)

Holding the asset costs financing (r) and earns income (q). If the market price is far from fair value, arbitrageurs normally close the gap.