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 Cash and carry arbitrage - still need to know? 
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Joined: 01 Mar 2013
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Looking at am 2008 and have no idea what this is.


07 Jul 2015
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Joined: 01 Mar 2013
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Its in the curriculum in the form of a carry trade. Its pretty simple just borrow in developed country with low interest rates and invest in an emerging market with high interest rates. It is an attempt to earn excess returns relative to risk in emerging markets where the portfolio manager believes that emerging markets are less risky than their returns suggest.


07 Jul 2015
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Joined: 01 Mar 2013
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One question I can think is
Explain Why Future Value is Used in the Synthetic Calculations.
Then cash and carry arbitrage relationship is one of the reasons.


07 Jul 2015
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Joined: 01 Mar 2013
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in the 2008 exam the reverse cash & carry is in the context of commodities (alternatives) and not currency/economics.
I don’t think this appears in 2015 curriculum.


07 Jul 2015
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