At time t, there is a stock S with price St (pay no dividend). Suppose Mary owns shares of stock S at t. Now, Mary plans to lend them to Jenny. When Jenny returns the shares to Mary at T, she will pay n% of the final price as a fee for loan. Derive a formula for the value at t of this forward contract to deliver stock S at T for a price of $K?

What if Mary will receive a dividend $D per share at T since that company plans to pay a dividend to people who own stock at t? What will the formula be?

During this time, the riskless interest rate is r%.