This is a tool that calculates the forward price of an asset in a forward contract, taking any fixed dividend payments into account.

For this calculation, it is necessary to supply the following basic information:

• The spot price of the asset.
• The term in years of the forward contract, i.e. when the forward price needs to be paid.
• The annualised, continuously compounded, risk-free interest rate. This is usually expressed in percentage terms (unless the formatting is explicitly set to express it as a decimal).
• The annualised, continuously compounded, dividend yield. This is usually expressed in percentage terms (unless the formatting is explicitly set to express it as a decimal).
• The number of fixed dividend payments, up to a maximum of 20.

If there is at least one fixed dividend payment, the following information is required for each payment:

• The dividend payment date.
• The dividend amount.

For ease of use, the tool provides two suggestion buttons for the dividend payment data:

• A Suggest Dividend Dates button that suggests dividend payment dates for all the later dividend dates based on the date(s) entered for the first dividend or first year's set of dividends.
• A Suggest Dividend Amounts button that suggests dividend amounts for all the later dividend payment based on the amount(s) entered for the first dividend or first year's set of dividends.

Before using the suggestion functionality, the following additional information should be supplied:

• The dividend payment frequency, which specifies how often dividends are paid per year. The possible values for the payment frequency are annual, semi-annual (default) or quarterly.
• The dividend repeat type, which specifies whether dividends should be paid on the same date or same week day, where possible.
• Any dividend growth rates. Specifying a non-empty dividend growth rate for a dividend in the first year's set of dividends causes the suggestion functionality to increase or decrease the dividends at the specified rate on an annual basis, with each annual path from a dividend in the first year's set being treated independently, e.g. if dividends are paid semi-annually and growth rates of 5% and 3% are specified for the first year's payments, the dividends are suggested to grow annually at these different rates. For extra flexibility, it is possible to specify a non-empty dividend growth rate for any dividend to alter the rate at which dividends along that annual path grow.

Associated tool link: http://www.coggit.com/tools/adv_forward_pricing_calculator.html