forward contract
A forward contract is an options contract that permits a seller to fix the price of a commodity to be sold on a future date.
forward contract
A forward contract is an options contract that permits a seller to fix the price of a commodity to be sold on a future date.
Additional Information
The benefit to the seller is that it locks in a buyer and a price. The buyer is betting that the market price of the commodity at the specified future date will be greater than that which they were contracted to pay, thus creating value.
