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What is the formula for the value at time

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A stock S with price at time t pays no dividends. If you own shares of S suppose that you can make some extra money by lending them to someone with the agreement that when they return the shares to you they will pay you b% of the final price as a fee for the loan. What is the formula for the value at time t of a forward contract to deliver the stock at time T for a price of K dollars? Assume the riskless interest rate at which you can borrow or lend money is r% for that exact period from t to T.

Reference no: EM132766416

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