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.
A forward is like a futures in that it specifies the exchange of goods for a specified price at a specified future date. However, a forward is not traded on an exchange and thus does not have the interim partial payments due to marking to market.Nor is the contract standardized, as on the exchange. put is the option to sell a futures contract, and a call is the option to buy a futures contract. For both, the option strike price is the specified futures price at which the future is traded if the option is exercised. Futures are often used since they are delta one instruments.