The value of a forward contract to the LONG varies at initiation, during the life of the contract, and at expiration.
At initiation, V0(T) = 0
During the life of the contract, Vt(T) = St – F0(T)/(1+Rf)T-t + PVt(Costs) – PVt(Benefits)
At expiration, VT(T) = ST – F0(T)
The value to the SHORT is the negative of the value to the LONG.
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