Intermediate
Practice Drills: Calculating Fair Value of a Commodity Futures Contract
A hands-on drill course for experienced retail investors and HNIs who want to check a commodity futures quote instead of trusting it. You will build the landed spot price for gold from international prices, the rupee, and import duty, compute fair value for MCX gold and silver with financing, storage, and insurance costs, back out the implied convenience yield from a backwardated MCX crude oil curve, price an NCDEX agri contract with warehousing charges, and finally wrap every fair value in a no-arbitrage band that accounts for brokerage, CTT, margins, and tax before deciding whether a mispricing is real.
Cost of CarryCommodity Futures Fair ValueConvenience YieldMCX and NCDEX ContractsNo-Arbitrage Bands
MODULES
5
DURATION
~3 hrs
TRACK
Alternative Investing
What You'll Master
How to collect and clean every input a fair value calculation needs: spot, interest rate, days to expiry, and contract specifications
How to derive the landed Indian spot price of gold from international prices, USD/INR, and import duty
How to compute fair value for MCX gold and silver futures with simple and continuous compounding, including storage and insurance
How to back out the implied convenience yield from a backwardated MCX crude oil curve and read what it says about supply
How to price an NCDEX agri contract with warehousing and assaying costs, and where harvest seasonality breaks the model
How to build a no-arbitrage band from brokerage, CTT, exchange charges, margin funding, and tax, and test a live quote against it
Access Level
LEARNER
Everything included
Full Text Playbooks
Actionable Exercises
Mobile Reading Mode
Lifetime Updates