The PNB futures expiring 6 days from now is currently trading at 101.30 while the spot price is 102.6. The actual price comes (using pricing formula) to 102.5. The futures contract is cheaper than the spot clearly. Does it qualify as an opportunity to lock a trade ? The Mid month contract is cheaper than the current month by a rupee (Calnder spread)
If you see an arbitrage opportunity, you’ll have to buy the futures and sell spot. How do you intend to sell spot? You’ll have to borrow stocks (SLB) and then short it. You’ll have to check if there’s availability of these stocks in the SLB segment and then include the cost of borrowing. If after including, it still seems like a profitable opportunity, go right ahead mate.
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Thanks ! For your answer.
This website “https://nseindia.com/live_market/dynaContent/live_analysis/slbs_chain/chainDataBySeries.jsp” NSE page has all the SLB stocks made available with their respective spreads, however few stocks seem to be missing, is it because their spreads for July are not considerable ? And can the lending rates for lot size be found here.