what is cost of carry in options
The cost of carry or carrying charge is the cost of storing a physical commodity, such as grain or metals, over a period of time.The carrying charge includes insurance, storage and interest on the invested funds as well as other incidental costs.torage costs (generally expressed as a percentage of the spot price) should be added to the cost of carry for physical commodities such as corn, wheat, or gold. The cost of carry model expresses the forward price (or, as an approximation, the futures price) as a function of the spot price and the cost of carry.