Forward price

The forward price (or sometimes forward rate) is the agreed upon price of an asset in a forward contract.^[1]^[2] Using the rational pricing assumption, for a forward contract on an underlying asset that is tradeable, the forward price can be expressed in terms of the spot price and any dividends. For forwards on non-tradeables, pricing the forward may be a complex task.

^ Van der Hoek, John (2006). Binomial models in finance. Robert J. Elliott. New York, NY: Springer. p. 41. ISBN 978-0-387-31607-9. OCLC 209909002.
^ Chen, Ren-Raw; Huang, Jing-Zhi (2002-11-01). "A Note on Forward Price and Forward Measure". Review of Quantitative Finance and Accounting. 19 (3): 261–272. doi:10.1023/A:1020715407939. ISSN 1573-7179.

[1] Van der Hoek, John (2006). Binomial models in finance. Robert J. Elliott. New York, NY: Springer. p. 41. ISBN 978-0-387-31607-9. OCLC 209909002.

[2] Chen, Ren-Raw; Huang, Jing-Zhi (2002-11-01). "A Note on Forward Price and Forward Measure". Review of Quantitative Finance and Accounting. 19 (3): 261–272. doi:10.1023/A:1020715407939. ISSN 1573-7179.

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