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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.

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

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