forward price

(redirected from Forward rate)
Also found in: Financial.

forward price

The price for a physical commodity to be delivered at some agreed time in the future. Forward prices are used in futures trading.
References in periodicals archive ?
The ten-year forward rate, as already noted, fell 170 bp from June 2004 to June 2005, reaching its lowest point in thirty years in the summer of 2005.
Consequently, any differences in prices can be directly attributed to alternative assumptions on the term structure of forward rate volatilities rather than to the initial conditions.
1) 10-year yield = (1/2) (5-year yield) + (1/2) (5-year forward rate 5 years from now),
The fair value of the forward contract is based on the cumulative change in the forward rate (0.
For example, the three-to-five-year forward rate is the two-year interest rate for the period between three to five years in the future.
Because of the symmetric nature of relationships among foreign exchange currency pairs, we conjecture that forward rate biases should be small.
A forward rate is a rate applicable to a financial transaction that will take place in the future, and is based on the spot rate, and refers to the rate that will be used to deliver a currency, bond or commodity in the future.
Additionally, the loan featured a 6-month forward rate lock that allowed the borrower to eliminate near term interest rate risk and minimize the prepayment penalty of a maturing loan.
This paper uses cointegration techniques to test the hypothesis that the forward rate for the Greek drachma-US dollar exchange rate is an unbiased predictor of the future spot rate.
The AERO 2008 guarantee enables aeronautic suppliers at Tier 2 and below (the measure does not relate to Tier 1 and Super Tier 1 suppliers, which are partners sharing risks with aircraft manufacturers), which normally conclude supply contracts in US dollars, to benefit from a state-guaranteed US dollar forward rate for a specified amount of turnover and for a maximum period of five years.
The interest rate for this loan was rate locked early with a forward rate lock commitment.

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