Consider a futures contract t stock, a company paying no dividends. Each contract calls for delivery of 1,000 shares of stock in T = 1 year. The interest rate is r_f = 6% per year (investors may both borrow and lend at that rate). The tock price at the initial time 0 is S₀ = $81.50 per share. At the same time (time 0), you establish a long position in one such futures contract.