The Futures function calculates the futures or forward price of a financial security. See Interest Rate Models for a further explanation.
Futures 
(AssetPrice, TimeExpire, InterestRate, YieldRate, TimeFormat, DivAmount, TimeExDiv, DivFrequency, DividendStyle, InterestType, YieldType) 
Futures 
(AssetPrice, TimeExpire, InterestRate, YieldRate, Dividends, TimeFormat, InterestType, YieldType) 
Note: Optional arguments are shown in Italics. MarketPrice is not Optional for the Implied Volatility Calculation.
Argument 
Description 
AssetPrice 
The price of the underlying asset. Must be > 0. 
TimeExpire 
Time expressed in either Days or Years (depending on the TimeFormat value) until the options expiration. Must be > 0. 
InterestRate 
Riskfree interest rate expressed as a percentage. This rate is interpreted as a continuously compounded rate unless otherwise specified in the InterestType argument. Must be > 0. 
YieldRate 
Yield expressed as a percentage (dividends or interest yield) of the underlying asset price. For futures contracts, the Yield Rate is the same as the Interest Rate. This rate is interpreted as a continuously compounded rate unless specified otherwise in the YieldType argument. 
Dividends* 
A twodimensional array or range of Dividend Dates and Amount pairs where the first column is the date and the second is the amount. The Dividend Dates are a range (array) of ascending unique values. All dividend dates and amounts must both be > 0.
As an example: Dividends Date Amount 0.0 0.20 0.5 0.15 1.0 0.30 1.5 0.25 2.0 0.15 2.5 0.40
*Used for the DivArr (Dividend Array) based model only 
TimeFormat 
Optional. Alphanumeric value indicating the format of the time arguments (i.e. TimeExpire, TimeExDiv, DivFrequency). If omitted, Days are used as the default. Specified as either: •Days = 0 or "D" (case insensitive) •Years = 1 or "Y" (case insensitive) 
DivAmount 
Optional. The amount of the dividend(s). If omitted, an amount of 0 is used. Amount must be > 0. 
TimeExDiv 
Optional. The time in Days or Years until the first dividend is received. If omitted, a value of 0 is used and therefore no dividends are assessed. Value must be > 0 for dividends to be considered. 
DivFrequency 
Optional. The time in Days or Years between dividend payments. If omitted, a value of 0 is used and therefore the only dividend assessed occurs at the TimeExDiv time. The value must be > 0 for multiple dividends to be considered. 
DividendStyle 
Optional. Numeric value indicating the Style or method that dividends are handled. If omitted, the discrete cash method is used (i.e. DividendStyle = 0). •Discrete cash flow method = 0 •Continuous yield method = 1 
InterestType 
Optional. Alphanumeric value indicating the type of InterestRate to use when evaluating the option. This value is converted to Continuously Compounded for the calculations. If omitted, a continuously compounded rate is used. 
YieldType 
Optional. Alphanumeric value indicating the type of YieldRate to use when evaluating the option. This value is converted to Continuously Compounded for the calculations. If omitted, a continuously compounded rate is used. 
Example
Calculate the Future value of an asset, with dividends, whose price six months from expiration of an option is $38, the riskfree interest rate is 6.5% per annum and no yield rate. The first dividend is expected to occur in .2 years and the second is expected to occur in .4 years or .2 years from the first dividend. The dividend amount is $1 for both dividends. So, 
Input 

Output 

Variable 
Value 

Name 
Value 
Asset 
38 

Price 
37.18105 
TimeExpire 
0.5 



InterestRate 
6.25% 



YiekdRate 
0.00% 



TimeFormat 
Years 



Div Amount 
1 



Time ExDiv 
0.2 



Div Frequency 
0.2 


