Tuesday, April 17, 2012
Legal Nature of Forward Contracts
The subject matter of forward contract must be purchase or sale of a specified underlying asset at some time in the future at a certain (preagreed) price (supply cost, forward price). The underlying assets may be goods, manufacturing raw materials, financial instruments (securities, currencies, values of stock indices, interest rates, etc.) with mutually agreed parameters in terms of quantity, price and delivery time.
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