Question
Write the general formula for V(S,t), the value of a forward contract (in terms of S, R, q, t, T, and L, where L is
Write the general formula for V(S,t), the value of a forward contract (in terms of S, R, q, t, T, and L, where L is the delivery price).
S = S(t) = current stock price
r = interest rate (assumed constant)
q = dividend rate (assumed constant)
t = calendar time
T = delivery date
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Bond Markets Analysis and Strategies
Authors: Frank J.Fabozzi
9th edition
133796779, 978-0133796773
