Question: Please don't copy wrong answer. Thank you so much You enter a contract such that at time t = T, you are obligated to sell

Please don't copy wrong answer. Thank you so much

Please don't copy wrong answer. Thank you so much You enter a

You enter a contract such that at time t = T, you are obligated to sell the underlying stock for a price of F. Assume that the contract is free to sign at t = 0. Denote by So the stock price at t = 0 and by r the continuously compounded interest rate. Use cash-and-carry to derive the formula for the fair value of F. You enter a contract such that at time t = T, you are obligated to sell the underlying stock for a price of F. Assume that the contract is free to sign at t = 0. Denote by So the stock price at t = 0 and by r the continuously compounded interest rate. Use cash-and-carry to derive the formula for the fair value of F

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