options on futures

noel

hey,
Does anyone know why it is that we use ft(T) when calculating the payoff of the option on a futures contract but we use f0(T) when calculating the lower bound of the options on futures?

Thanks!

scarecrow

i don't think this terminology is helping anyone.....can you post a problem so we can think about it without the formulas....thanks

Rasec

Are you referring to Put call partiy on futures?

C + (X- F)/(1+RFR)^(t) = P ??