How can you say that the price is a future price if it is set on the - ProProfs Discuss
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How can you say that the price is a future price if it is set on the basis of the current market?

Asked by Tyler, Last updated: Dec 04, 2021

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John Smith

John Smith

John Smith
John Smith

Answered Sep 08, 2016

When you enter into a forward or futures contract with another party, you and that party are agreeing that a purchase and sale will take place in the future on a particular date. The price to be paid or received in the future is set at the time the contract is entered into. The prevailing price at the time delivery is scheduled to occur (i.e., the going price at deliver) will not be a factor.

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