Not sure it is a good idea to work with a 'dividend yield' > 0 and at the same time expect no cash flow after cutoff point of 5 years...From F(T)=0 (hope i understand right that F(T) is the T-expiry futures price today) i would deduce S(T)=0 and S(0) = D=sum of discounted dividends prior to T. Let's assume there is only one Dividend. then F(t) = D*exp(rt) if t is before its payment, and 0 after that - by arbitrage.@Traden4Alpha:>The key is that the real difference between holding liquid equity and holding a liquid futures contract is that the equity holder has rights to both retained and disbursed cashflow and capital whereas the futures holder only has rights to retained cashflow and capital. To the extent that disbursements of dividends and capital are uncertain during the term of the contract, the price of that contract will differ from the equity price and need to include a risk premium (assuming the futures buyers are risk-averse).The uncertain cash flow here would be D in this simple example. But there is no reason for futures holder to assess its value differently than for the equity holder: the futures holder is interested in the value only in the case where t (expiry) is before dividend payment. But after expiry the ex-futures holder is an equity holder himself.

QuoteOriginally posted by: torontosimpleguy<brWhatever… Better to be able to generate erroneous but original ideas than to be fruitless. I believe in my ideas (and I already started working on particular algorithm) and I don't let some jerk to put me down. Arrivederci.Agreed. But a simple check of historical data will show you whether your strategy works or not.The alternative is that you are convinced it'll work on a hunch without doing the necessary work, start trading it, and discover it doesn't when you run of out money.