# Valueing a Short future contract with dividens [closed]

A forward of an underlying paying a yield $$q$$ can be priced with the equation:

Price $$= S_0 e^{(r-q)*t}$$

or

Price $$= (S_0-I)e^{rt}$$

Where $$S_0$$ = Spot price, r = interest, q = dividend yield, I = PV of future cash flows and t = time.

The value of a long future contract would be:

Value $$= S_0 e^{-q t} - Ke^{-rt}$$

or

$$S_0 - I - Ke^{-rt}$$.

My question is how the value would differ if it were a short future contract, specifically i'm wondering regarding the dividends.

## closed as unclear what you're asking by LocalVolatility, Alex C, skoestlmeier, Lliane, byounessFeb 8 at 10:02

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• The pricing of the future is the same whether you're long or short the future. – Lliane Feb 8 at 3:02