Imagine you are tracking a major metal producer in India. You notice that the spot price of refined copper is significantly lower than the price of a three-month futures contract, even after accounting for storage,...
Imagine you are building a valuation model for a major Indian steel manufacturer that hedges its iron ore requirements via the MCX. You notice that as the contract expiry nears, the company’s cash flow projections...
Imagine you are tracking a refinery’s inventory strategy. You notice that the theoretical 'fair value' of a crude oil futures contract, calculated using the cost of carry model, sits significantly lower than the actual...