The climate in southern Florida is subtropical and humid, with temperatures ranging from 60F (16C) in midwinter (which is peak tourist season) to around 80F (27C) in summer.he climate in southern Florida is subtropical and humid, with temperatures ranging from 60F (16C) in midwinter (which is peak tourist season) to around 80F (27C) in summer.
DEFINITION of 'Forward Contract'. A customized contract between two parties to buy or sell an asset at a specified price on a future date. A forward contract can be used for hedging or speculation, although its non-standardized nature makes it particularly apt for hedging.Unlike standard futures contracts, a forward contract can be customized to any commodity, amount and delivery date.REAKING DOWN 'Forward Contract'. Consider the following example of a forward contract. Assume that an agricultural producer has 2 million bushels of corn to sell six months from now, and is concerned about a potential decline in the price of corn.
In each of these periods, different factors affect the forward price, and the implications for the relationship between the forward price and the delivery price are different in each period. Contract begins (t = 0): This is the simplest case. Two parties agree on the contract and create it. As the Investopedia article states, the forward price equals the delivery price. Life of the contract (0 < t < T) Over the life of the contract, the forward price depends on multiple factors, especially the spot price of the underlying asset. Because constantly-changing factors like supply and demand affect the spot price, the forward price can, in turn, vary considerably over the life of the contract.