The thing about math at a certain level is that there are no more easy exercises. I have learned to make a habit of creating simple exercises. These are for the forward price, which is the contracted price to buy an asset at time T in the future; and the prepaid forward price, which is the price paid now for an asset that will be delivered at time T. In these problems, * r * is the continuous interest rate, and delta is the continuous dividend rate.

Solutions:

Later today, I will post some tougher ones that require a little thinking.