But this is not enough to eliminate risk, because it implies merely that positive values in some states are balanced by negative values in others. Alternatively, the RNVR states that the expected rate of return on each asset, again using the artificial probabilities, equals the risk-free interest rate. Gucci Wallets Offers. In constructing the NPV relationship, it is assumed that: (a) the payoff, expressed by v, is known with certainty; and (b) the interest rate, r, at which funds can be borrowed or loaned in unlimited amounts is known with certainty and is constant across time. Buy Cheap Gucci Trainers. Credit for devising the theory is normally accorded to Friedrich Lutz (1940), though others, particularly Sir John Hicks (1939), were pursuing similar lines of enquiry. Gucci Wallets Offers. If the delivery date for the futures contract is, say, six months from the present, then viewed from the present the bond matures after eighteen months - i.e. one year from the futures contract delivery date. Gucci Marrakech Platform Boot. Keynes developed his theory of forward and spot prices in a Manchester Guardian (newspaper) article in 1923. Gucci Wallets Offers. The convenience yield is introduced by subtracting a term from the right-hand side of (14.1), or adding it to the left-hand side.