Considering the forward price f of a non-dividend-paying, Ask an Expert

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Considering the forward price F of a non-dividend-paying stock, we have

where r is the risk-free interest rate, which is constant, and P_t is the current stock price. Suppose P_t follows the geometric Brownian motion dP_t = Derive a stochastic diffusion equation for F_t,T.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91980770

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