Prepaid Forward Contracts

[c-loewe]

With a forward contract, you both pay for and
receive the stock at the delivery time T. With a prepaid forward contract, you pay
for the stock at the initiation of the contract; the other conditions remain the same.

i) What is the arbitrage free price for a prepaid forward contract, F
?
ii) What is the value of a prepaid forward contract?

[danmcgree]

great minds think alike at anu... I haven't really found much on it either except a little bit to do with prepaid forward contracts on google books

[c-loewe]

:dull: it's due tomorrow