The forward price (or sometimes forward rate) is the agreed upon price of an asset in a forward contract. Using the rational pricing assumption, for a forward contract on an underlying asset that is tradeable, we can express the forward price in terms of the spot price and any dividends etc. For forwards on non-tradeables, pricing the forward may be a complex task.
Read more about Forward Price: Forward Price Formula, Proof of The Forward Price Formula, Forward Versus Futures Prices
Famous quotes containing the word price:
“No performance is worth loss of geniality. ‘Tis a cruel price we pay for certain fancy goods called fine arts and philosophy.”
—Ralph Waldo Emerson (1803–1882)