Forward Contracts #1 pricing (on stock with no dividends)

how to price a forward on a non dividend paying stock like google. I also show how to make money when the theoretical price diverges from the actual price.

[aiao]

Thanks! a Little thing to be corrected: (560 - 510) = 50 not 40

[yttommy]

In example 1 Is there not an actual arbitrage. You would borrow 570/1.05 = 543 - buy the stock and pocket the cash difference (11) to do what you wanted with it - then you sell the stock in the future at 570 and repay the loan?

[tommymodec]

Very helpful video - appreciate you taking the time

[bibs]

I have a test in 3 days and this has really helped! thanks a lot

[stepbil]

thanks for spotting . what was i thinking, lol.

[emmanuelthomas]

Thanks am having this exam in six hours time

[overtarget]

532(1+r)^t= 558.6 this is the loan with interest you own for a yr.

[ahmedalsharman]

good vid, but the net gain is $50 not $40 :)
thx alot.