Full Charge

A “full charge” is what happens to an iPhone after it’s been plugged in for, uh, what is it? Like, 187 hours?

It also refers to a futures price that covers all of the costs associated with its underlying asset, which is what we’re here to talk about today. At least, until our iPhone finishes charging.

Anyway, back to the futures…

Let’s say we’re into bananas. We’ve got a feeling they’re about to become the next kale, so we’ve decided to invest some serious coin in banana futures. Now the person who is currently in possession of the bananas (our underlying asset) incurs his or her own costs associated with growing, storing, and transporting those delicious little sources of potassium. When we pay a high enough price for our banana futures contract to cover all of those associated costs, that’s what’s known as a full charge. It’s also called a “full carry,” since we’re fully carrying all of the bananaholder’s additional costs.

Wait, is “bananaholder” not a real word? Well if it isn’t, it should be. We’ll look it up to be sure…once our phone is fully charged.