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user30523
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How to compute the forward price using a replicating portfolio?
Are you considering a long forward? Because then at t=3 the value of the forward is $50S_3-K$ and the bank loan $-30S_0e^.09$. To replicate A, the $-K$ and $30S_0e^.09$ need to cancel. Do you mean that we use bank deposits at t=0?
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