 In this section, I will explain that what could be the link between the forward price and the future spot price. So, when we sign any financial futures contract, we account for the forward price in it. Now, with the help of the forward price, it is assumed that after 1 year or after 6 months or after 2 years, when you are going to materialize this particular derivative or complete it, or you will take an exit position from it, then what would be the future spot price of that time? So, that is something which is important because you will get to know whether the future spot price is going to be negative or going to be negative. So, firstly, we are dealing with a situation in which we assume that suppose we are trying to invest in a stock in which there is no dividend. And we assume this so that we can simplify our example. After that, we will discuss a situation in which we will get dividend on stock. So, now we assume that we are trying to invest in a stock in which there is no dividend. And above that, you get a positive risk premium offer. That is, for investors, you will get a positive risk premium offer. We have discussed the positive risk premium that if I want to take any risk to invest, then for that, how much I will get other than the top of the risk, risk-free return, and how much additional return I will get which I am thinking of as premium to take risk. So, if suppose I am getting less than 6%, then if I am going to invest on the risk asset, then if I am getting an offer of 8% from there, then the 2% in this is the risk premium, which I am going to get in order to take an additional risk. So, in that, we assume that let's suppose we are planning to invest in a stock in which you are getting a positive risk premium offer, you are not getting a dividend. And in this situation, it is important to note that its forward price will not help to forecast the expected future spot price. There could be some other things that are to be taken into account. So, as an example, suppose we have the stock of standard and poor, that is risk premium, you got to know that on the stock of standard and poor, you are getting a risk premium offer, we assume 7%. And your expected rate of return, that risk less interest, you are getting an offer of 8%. So, in this kind of a situation, you will collect both these things. If you add the risk less rate and the risk premium, then you will get to know that the total rate of return is going to be 15% to invest in any risk asset. So, this can be assessed. And then if the current spot price is suppose $100 per year, your expected spot price in the future, in this situation, as we have counted the risk premium, and we have counted the risk-free return, we collected both of them and collected 7% and 8% and got 15%. So, from here, we assume that if your spot price is $100, and these two things become a combination of 15%, then your future spot price will be $115. In this situation, for the simplicity sake, we have assumed that you will not get dividends here. So, this means that if you are expecting that our future spot price is 15% at the top of whatever you will get, then you will get into an investment or such that you will sign in the future contract. Otherwise, you will not. And if you look at the formula to see how this actually works, then we are expecting the rate of return on the standard and pours to be taken out. We are using the sign R bar SP. And this is simply the ending price of the stock and the beginning price, the current spot price divided by the current spot price. So, you have got expected rate of return which is equivalent to 0.15 or we can call it 15%. Now, with the help of this formula, you can calculate the future spot price which we have assumed as S1 bar. And if we count this 15% with the current spot price and do 1.15 multiplied by S, then you will get to know that the future spot price will be $115 as I told you earlier. Now, another important thing which we need to understand is that if you want to see the forward spot price parity, then in that case which we take out parity, then you have to account for the risk premium and you don't account for the risk less rate of interest. So, this is an important thing which has to be considered. So, only the risk premium is to be taken when we are trying to find out the value of the forward spot price parity. So, to take out the parity, you have to take the risk premium but if you want to take out the expected rate of return, then you have to collect the risk premium and you will get to know that how much our expected rate of return should be and you can use this information to take out the future spot price for a situation when we are assuming that we are not going to get a dividend.