Talk:Spot contract

	This article is within the scope of WikiProject Finance & Investment, a collaborative effort to improve the coverage of articles related to Finance and Investment on Wikipedia. If you would like to participate, please visit the project page, where you can join the discussion and see a list of open tasks.Finance & InvestmentWikipedia:WikiProject Finance & InvestmentTemplate:WikiProject Finance & InvestmentFinance & Investment articles
Mid	This article has been rated as Mid-importance on the project's importance scale.

UFH and cost of carry can't work at same time?

(moved from User talk:Garylhewitt)

Gary: On spot price, you seem to be saying that both the unbiased forward hypothesis and the cost of carry model can't be true at the same time. Am I reading this right? If so I don't agree. Smallbones 15:03, 23 December 2005 (UTC)[reply]

I see how that this opposition might be implied by separating those paragraphs. Not my intention, so it makes sense to disentangle the models from the contrasting cases of perishable vs. unperishable commodities. The basic idea in this context is that spot prices may or may not already carry an estimate of future spot prices; the perishable commodity case is just the extreme (carrying cost -> commodity price) case of the cost-of-carry model. Maybe put the base case (zero carry cost, non-perishable) first -> spot price already contains future price estimate; vs. extreme case (high carry cost, perishable); spot price doesn't reflect future price estimate. Gary 16:46, 23 December 2005 (UTC)[reply]

Is spot rate effective annual rate?

Is spot rate the effective annual rate (EAR), or bond equivalent rate (APR), or the period effective rate? Feel free to change this. and remove my signature. For example, a spot rate for a 6 months bond. How is the spot rate calculated?

EAR=(P1/P0)^2-1

APR=(P1/P0-1)*2

effective rate=P1/P0-1

Similarly, If the term is 18 months, how is the spot rate quoted? Jackzhp 00:53, 12 October 2006 (UTC)[reply]

HOW TO CALCULATE A ZERO RATE? AND WHAT IS THE MEANING OF THAT WORD? —Preceding unsigned comment added by 134.155.36.20 (talk) 16:20, 6 May 2008 (UTC)[reply]

The example doesn't mention the subject

The example doesn't actually mention the term "Spot price" anywhere. Please improve the example to explain what part of it is meant to exemplify the spot price. — Preceding unsigned comment added by Nekiko (talk • contribs) 22:42, 18 September 2011 (UTC)[reply]