A forward contract, which is similar to a futures contract, operates as follows. Now, at time t = 0, Party A agrees to purchase an asset from Party B at a specified delivery time t = T for a specified price F. (Note that Party A is committed to the future purchase by contrast, with a European call option the holder has the right, but not the obligation, to buy at the prescribed price.) Appealing to the no arbitrage assumption, show that a fair value for F is S(0)e^rT