Synthetic Forward Positions
A forward price is represented by all of the following, _except_:
Incorrect.
This is the correct and most straightforward notation for the forward price.
No, that's not it.
The current spot price can be equated to the forward price when compounded through time at the risk-free rate, since both values are known. This expression is a correct representation of the forward price.
Correct!
The forward price can be represented by either side of this equation:
> $$F_0(T) = S_0(1+r)^T$$.
But the expression shown in this answer choice ignores the fact that both the forward price and the exercise price are discounted to the present value in the put–call-forward parity condition:
> $$\displaystyle \frac{F_0(T)}{(1+r)^T} + p_0 = c_0 + \frac{X}{(1+r)^T}$$.
$$F_0(T)$$.
$$S_0(1+r)^T$$.
$$c_0 - p_0 + X$$.
