Dec 062018
 

The sale of a bond futures contract and simultaneous purchase of the bond in the cash market. The trade is carried out because the futures are trading at a higher price than the fair futures price. See Cheapest to Deliver.

More on banking and finance terms tomorrow, so please come back for more on what the meaning is of words like Cash and Carry Arbitrage.

Example of Cash and Carry Arbitrage in use?

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