Agreement
Rucha Pawar
(Querist) 29 May 2012
This query is : Resolved
sir
what is cash and carry transaction can one make an agreement for it , whether it is enforceable at law.
Chanchal Nag Chowdhury
(Expert) 29 May 2012
Cash and carry transaction is when one pays for the goods bought in its entirety & takes away the goods immediately.
Deepak Nair
(Expert) 29 May 2012
A cash and carry transaction is a type of transaction in the financial futures market where the cash or spot price of a commodity is below the futures contract price. Cash and carry transactions are considered to be arbitrage transactions. Under these circumstances a purchase of the cash commodity with borrowed money and the simultaneous sale of the futures contract can provide a profit. The carrying costs in a cash and carry transaction are not deductible if the underlying commodity or security is a part of a balanced position. These costs instead are considered to be capitalized and are added to the investment’s cost basis.
