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- Martinghoul replied Aug 18, 2013
Well, long dated options that involve the traditional funding currencies (e.g. JPY and CHF) is where this generally holds. And no, a trade that Colm was describing doesn't involved buying spot and using the actual carry to offset the cost of the ...
Can carry trade interest pay for long option premium?
- Martinghoul replied Jul 21, 2013
Futures are irrelevant, as it's a very small mkt. Options, especially the various exotic matter a lot. There's also other effects like the WMR and month-end fixings. Those are all significant.
FX Futures Expiry Date Effect on Forex
- Martinghoul replied Jul 21, 2013
Yes, carry can help offset the cost of the option (it's not actual physical carry, in this case, but rather the term structure of the forwards that is implied by the positive carry). It's relatively rare, however, that this carry fully offsets the ...
Can carry trade interest pay for long option premium?
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