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in this video well show how to price a forward so a forward is the contract between two parties to buy or sell an asset its specified future time the price agreed today so what this means is that at some point in the future I will give you a predetermined amount of cash and you in exchange of that will give me a title of ownership of an asset so obviously this asset can be anything it can be you know an ounce of gold it can be a share it can be a pork belly but in todays video well just look at how to price a forward on a known dividend paying stock so the question is what is the price that we must be paying for the forward if there is no arbitrage so Im not saying what should be the price or what could be the price but what must be the price assuming there is no arbitrage in the market well lets take an example of one unit of Google stock and lets say that we want to agree a price today offer forward expiring in a years time today Google closed at five three one point ninety n