Forward contracts Notations:(cont St: price of asset underlying forward contract at T F: forward price at t r: risk-free rate per year k: delivery price in forward contract f: value of a long forward contract Charles cao9 Charles Cao Forward Contracts ◼ Notations: (cont.) ST : price of asset underlying forward contract at T F : forward price at t r : risk-free rate per year K: delivery price in forward contract f : value of a long forward contract