at 1000 Am, May 14 nymex crude at 47$/ & UsdINR is 60.00 after converting the crude price in Indian rupee will be 47x60=2820, at the same time Mcx Apr 14 crude price is 2845. A difference of Rs25 exist. How the difference is arrived? People tell me that it is Cost of carry/Premium, tax, duty etc, But what i want is how the price difference is arrived, is there any formula?
Hi Kumaresh,
I too searched for the same thing…
But the Answer is there is no Such formula…
To understand
The price u calculated i.e. Rs 2820 by Mutiplying USDINR x Nymex price is price with which U’ll get One Barrel in US…But Bringing that One barrel to India…U hav to pay Shipping charges, Duties etc
In plain language… here the COC means if U import the the Crude from outside…
the Shipping Charges, taxes etc will amount to Rs25 (say) per barrel…
It is not fixed…It may differ…It is the Investors increase or decrease the price diff based on expectation…
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