1, determine the spot price and futures price.
2. Derive the relationship between futures price and spot price (using fair model), which is based on no arbitrage condition.
3. Risk-free interest rate is included in this relationship. The risk-free interest rate can be determined according to market conditions, such as the yield of government bonds or other benchmark interest rates.
4. According to the above data, use the fair model to calculate the forward delivery price. A forward contract refers to a contract to buy or sell assets at an agreed price on an agreed date in the future. It is a transaction without an intermediary and cannot be transferred to others after the contract is signed.