Formula Sheet

PV =
FV
(1+EAR)
T
; FV = PV (1 +EAR)
T
FP = S
0
(1 +R
f
)
T
V
t
(long position) = S
t

FP
(1+R
f
)
Tt
, t < T
FP(on an equity security) = (S
0
PV D) (1 +R
f
)
T
FP(on an equity security) = S
0
(1 +R
f
)
T
FV D
V
t
(long position) = (S
t
PV D
t
)
FP
(1+R
f
)
(Tt)
FP(on a coupon-paying bonds) = (S
0
PV C) (1 +R
f
)
T
FP(on a coupon-paying bonds) = S
0
(1 +R
f
)
T
FV C
V
t
(long position) = (S
t
PV C
t
)
FP
(1+R
f
)
(Tt)
FP(on a currency) =
S
0
(1+R
FC
)
T
(1 +R
DC
)
T
V
t
(long position) =
S
t
(1+R
FC
)
(Tt)

FP
(1+R
DC
)
(Tt)
1