= Synthetic zero-coupon bond
{title2=$P(t,T)=S_t/F_t^T$}
For a non-dividend-paying <stock>, buy $1/F_t^T$ shares and short a <forward contract> for the same number of shares at its fair delivery price $F_t^T>0$. The combined payoff is one at $T$, and the initial cost is $S_t/F_t^T$. This replicates a unit <zero-coupon bond> without initially assuming an independently traded bank account. A single maturity quote determines that discount factor; it does not determine the entire future short-rate process.
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