Hi all, will somebody help me to understand a small phrase from Hull,
related to Finance? I have just started reading finance, please dont mind if
it is too silly (I understand I need to work more!)

While I was reading Hull, I came to a model:

dS = (rt - qt)Sdt + sigma * dz

He defines "rt" as : Instantneous Forward Interest Rate for a Contract,
maturing at Time "t".

I understand that, a forward instantaneous forward interest rate F(t,T)
means, the Zero rate applicable for very short period of time in future time
"T", seen at present time "t".

Then, how can I interpret this "rt"? what "contract" Hull is refering to? It
is maturing at "t" (as per his definition), but when is was initiated?

Thanks for your help.

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