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A contract between two parties to make a transaction at a specified future time.

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How to compute the forward price using a replicating portfolio?

Create a replicating portfolio B using a forward contract on 30 assets with forward price $K$ and bank deposits to determine $K$. … The value of the forward contract of B is $30S_3-K$ and thus I need bank deposits to the value of $$30 S_3+30(10 \cdot e^.03+15\cdot e^.06)-(30S_3-K)=K+30(10 \cdot e^.03+15\cdot e^.06). …
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