35. Options, Futures and Other Derivatives Ch5: Forward and Futures Prices Pt10

[@michaeljlr8646]

could a convience yield be applied to any sort of future or contingent claim as well, we are told that any arbitrage opp. will be exploited but what if its just not worth it to some people?

[@samickgb]

Hey Mark, what would the formula for future price be if an income was stated as a dollar amount at a specific time and the shortage cost was a percentage of the spot?

[@MarkMeldrum]

Well, I would use Known Yield which would be a negative yield. Onto this I would add the PV of all known income. So use the Known Income formula but adjust the power term of Euler's constant to reflect a negative yield.