The interest factor, R(t, T), appears because the market interest rate is the opportunity cost of funds held in a margin account. The advantage of this procedure is that the parties can exchange a commodity that does not match the exact requirements of the futures contract. 1973 Gucci Tote Price. Another attribute of some bonds is that the promised payments are adjusted for changes in the price level. Gucci Cheap Mens Backpack. The analysis relies on the standard dynamic programming device of reducing the intertemporal optimization problem to a sequence of single-period problems. 1973 Gucci Tote Price. Also at an advanced level, Campbell, Lo and MacKinlay (1997, chap. 11) survey the empirical literature with an emphasis on the application of economic models. Gucci High Top Flap Sneaker. Then, as time moves forward to date t +1, the investor re-optimizes on the basis of new information, looking forward from t + 1 to T, implements the plan for t + 1, and so on. 1973 Gucci Tote Price. Although with futures contracts there is much crediting and debiting of margin accounts during the life of the contract, it should be remembered that the futures contract price refers to a price at which the asset changes hands upon delivery.