3. Use Exercise 1. to show that the fair value of a forward contract is V(0, S) = Soe". Hint: Remember that a forward contract is paid in time-T dollars, whereas Black-Scholes describes the price of a derivative which is paid in time-0 dollars. Black-Scholes should be satisfied by the price of a pre-paid forward which is e-TV (0,5).] 3. Use Exercise 1. to show that the fair value of a forward contract is V(0, S) = Soe". Hint: Remember that a forward contract is paid in time-T dollars, whereas Black-Scholes describes the price of a derivative which is paid in time-0 dollars. Black-Scholes should be satisfied by the price of a pre-paid forward which is e-TV (0,5).]