Difference between revisions of "Forward contract"
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==Definitions== | ==Definitions== | ||
According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]], | According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]], | ||
| − | :[[Forward contract]]. A contract to buy or sell some item at some time in the future at a price established when the contract is entered into. | + | :[[Forward contract]]. A contract to buy or sell some item at some time in the future at a price established when the contract is entered into. |
| + | According to [[Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition)]], | ||
| + | :[[Forward contract]]. A contract under which one party agrees to buy a commodity at a specific price on a specific future date and the other party agrees to make the sale. Physical delivery occurs. | ||
==Related concepts== | ==Related concepts== | ||
Latest revision as of 00:58, 2 November 2019
Forward contract is a contract to buy or sell some item at some time in the future at a price established when the contract is entered into.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Forward contract. A contract to buy or sell some item at some time in the future at a price established when the contract is entered into.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Forward contract. A contract under which one party agrees to buy a commodity at a specific price on a specific future date and the other party agrees to make the sale. Physical delivery occurs.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
