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:
“A work of art that contains theories is like an object on which the price tag has been left.”
—Marcel Proust (1871–1922)