Description
Return spot+storage+financing-benefit and delivery price minus that result.
A financial model connects supplied rates, discount factors, cashflows or prices under a particular convention. A local identity or residual is not a complete valuation, an observed market relationship or a promise of future returns.
Return spot+storage+financing-benefit and delivery price minus that result.
When to use this tool
Use Carry Price Delivery Basis Gap when you need one transparent financial-model term.
How to use the tool and how it works
- Enter spotPrice, storageCost, financingCost, benefit, deliveryPrice. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read suppliedCarryPrice, basisGap. Use the output convention below.
Require nonnegative spot, storage, financing and benefit. Return spot+storage+financing-benefit and delivery price minus that result.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| spotPrice | Spot Price | Required. Finite number; minimum 0. |
| storageCost | Storage Cost | Required. Finite number; minimum 0. |
| financingCost | Financing Cost | Required. Finite number; minimum 0. |
| benefit | Benefit | Required. Finite number; minimum 0. |
| deliveryPrice | Delivery Price | Required. Finite number. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| suppliedCarryPrice | Supplied Carry Price | Required. Finite number. |
| basisGap | Basis Gap | Required. Finite number. |
{
"input": {
"spotPrice": 100,
"storageCost": 5,
"financingCost": 3,
"benefit": 2,
"deliveryPrice": 110
},
"output": {
"suppliedCarryPrice": 106,
"basisGap": 4
}
}Limitations and assumptions
- All costs are present comparable cash amounts on one delivery basis, not annual rates. Negative carry prices are retained; no actual no-arbitrage trade is established.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Use a complete model matching the instrument, cashflows and market conventions. Review compounding, timing, currency, uncertainty and omitted costs before using a local estimate in a financial decision.
References
Similar or alternative tools
- Futures Convenience Yield Carry Term
Return annualRate+storageRate-ln(futures/spot)/years.
- Fx Covered Interest Parity Gap
Return spot×domestic growth/foreign growth and observed forward minus parity forward.