Use an arbitrage argument, analogous to the one in Table 11.1 on page 212, to prove that

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Use an arbitrage argument, analogous to the one in Table 11.1 on page 212, to prove that in a stochastic interest rate world, the strike price of a forward contract Ft(K, T) that can be entered costlessly at time t = 0 has to be

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which is the forward price of a non-dividend paying underlying V at t = 0.

Table 11.1 Forward arbitrage portfolio

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Strike Price
In finance, the strike price of an option is the fixed price at which the owner of the option can buy, or sell, the underlying security or commodity.
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