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I'm having issues with a question regarding forward contract values.

Basically here is the question:

The risk free rate is 10%

Underlier is currently trading at \$100

It is expected to trade at either \$90 or \$120 at the end of the period.

The forward

*asset*price in the contract is \$110

I need to find the no-arbitrage value of a forward contract on the underlier.

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**I'm stumped for a number of reasons. I can't seem to work out how to deal with the two probabilities of the end of period prices (\$90 and \$120).**

I get that 10% x 100 = \$110, which is the risk-free growth expected at the end of the period.

__I believe that to find the value of the forward contract I would do this:__

Traded value at end of period - Actual value at end of period.

How do I go about doing this question? I literally can't even get a start. I'm looking at theory from my book, but it doesn't seem to deal with multiple trading price probabilities.

Any help would be greatly appreciated.