Forward Price

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Forward Price

The agreed upon price of the underlying asset in a forward contract. When a forward contract is made, the parties agree to buy/sell the underlying at a certain point in the future at a certain price. The price is negotiated directly between the parties, unlike a futures contract, which trades on an exchange. Partly because there is little secondary market for forward contracts, determining the forward price is a zero-sum game: one party will gain on the contract and one will lose.
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References in periodicals archive ?
In this work we have presented a model based on ambit processes to forecast forward prices both in short- and in medium-term scenarios.
The graphs are compiled using market data from end-of-day reports; and provide information about what 1-year forward prices for gas and power are likely to be if clients "went to market" on that day.
The purchase will add 26 cents to Valero's earnings per share based on 2010 market prices, and 30 cents based on 2011 forward prices, the company said in announcing the deal.
Given the current forward prices of oil, Terra Markets estimates Statoil's forward price-to-earnings (P/E) ratio at 7.7 against a historical average of 9.9.
Liverpool John Lennon Airport's second biggest carrier said last month that forward prices for fuel had risen from EUR840 per tonne to EUR1,000 per tonne since February 7.
EasyJet said forward prices for fuel had risen from 840 US dollars a tonne to 1000 US dollars per tonne since February 7.
British Gas said current forward prices for gas are at 45p a therm for the coming winter - up from 40p in June - and will be the second highest on record behind 2005/06 if they remained at these levels.
The contracts had forward prices ranging from $57.43 to $64.87 and provided for quarterly reset provisions through the second quarter of 2001.
Launched in response to the "huge growth in the bandwidth market," Dow Jones said the newsletter carries "valuable information on pending deals and developments," as well as bandwidth price tables, analysis of the previous week's deals, spot forward prices for major routes across the U.S.
M2 EQUITYBITES-January 18, 2011--Finnish Fortum's Q4 2010 hit by high forward prices on energy(C)2011 M2 COMMUNICATIONS http://www.m2.com
NORDIC BUSINESS REPORT-January 18, 2011--Finnish Fortum's Q4 2010 hit by high forward prices on energy(C)2011 M2 COMMUNICATIONS http://www.m2.com