Question regarding stock prices, future prices, prepaid future prices....

lundi 13 avril 2015

Hi all,



Wondering if someone could offer me a brief explanation regarding these topics. I cannot seem to totally grasp the concepts. I have these formulas that I plan to memorize for my test next Monday:



• FP = S – PV(dividends)

• F = FV of prepaid forward = FPe^rt or FP(1+r)t

• F = Se^(r - δ)t

• FP = S^e-δt



Can someone try to tell me what these formulas mean? Would be very much appreciated. Thank you!





Question regarding stock prices, future prices, prepaid future prices....

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