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Question 01 Assuming continuous compounding, an asset has a carrying charge per unit of time proportional to the spot price. This condition might occur, for

Question 01 Assuming continuous compounding, an asset has a carrying charge per unit of time proportional to the spot price. This condition might occur, for example, if the charge represented insurance for the safe storage of the asset. Let the charge be q S[t]. Show that the theoretical price of the forward contract with delivery date T is F = Se(+q) T

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