Rd. 38 Question #3 - Receive Storage Costs understand, continue, question, getting, similar

svgleeson

Could someone explain why in this question (the second part) we RECEIVE storage costs when we have shorted the spot?
I understand mathematically why it would be so (for no-arbitrage prices), but can’t nail it down conceptually. Are we assuming that in shorting the asset we will continue to hold it and the new owner will pay us the storage costs? Or is there some similar explanation?
It just doesn’t seem obvious to me that once we have sold an asset that we will be getting paid the storage costs.

dirk01

If you purchased the asset, you would pay to store it somewhere.
Since you shorted it, you don’t have to pay for storage costs, so it is a benefit. They use the term receiving in this sense. You aren’t really receiving it, you’re just not paying for it.