Financial Derivatives Graphs And Simulations On Excel, Multiple Excel Files

GoldSpotFutures 1 monthSizeTStorage Cost1 monthExcluding other infobuy spot gold and short your position (futures)Storage cost totalTotal short amtProfit (loss)="1/12"Borrowt=0at time TInterest paid TO BANKFutures Price = S exp rt spot price times exponential r * tr is interest rateT is time to expiration (expressed in yearly basisfair value of the contract is close to spot pricein reality the difference between spot and short futures is so big (arbitrage opportunity). So gold is mispriced and doesn't happen empiricallyInterest Rate (loan) yearlyStock IndexFutures 1 yearInterest Rate annualSP500 spotFair Value (price) no arbitrage opportunityLong futures the sell indext = 0t = TSell SpotProfitDividend YieldDividend PaidFair Value of FuturesS * exp (r-q)*TR interest rateQ is div yieldThe fair value is less than the spot because of very low interest rateLong futures