ayodayo

I intutively work it backwards.
At the expiration of future liability to settle = [ St - F]  x N* x q—–> So we owe  = N*q F, it would be worth St x N* x q
Now equations # of contracts N = V (1+Rf)^ t / q F
Effective amount required (due to round off)
V * = N* x q x f / (1+Rf)^t………we put this much money in risk free bond which grows to V* (1+Rf)^t—> equivalent to our liability at expiration of future..
Now at expiration we will receive St (price at expiration) x N* x q……..here due to dividend reinvestment
# effective no of stocks = N* q / (1+delta) ^ t…….which will grow to N* x q due to reinvestment of dividends
I hope i made sense & have got it right!