Forward premium


 

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Forward premium

The difference between a forward exchange rate and the spot exchange rate, expressed as an annualized percentage return on buying foreign currency spot and selling it forward.

Forward premium

A currency trades at a forward premium when its forward price is higher than its spot price.



Forward premium

Similar Matches

Expectations theory of forward exchange rates

Expectations theory of forward exchange rates

A theory of foreign exchange rates that states that the expected future spot foreign exchange rate t periods from now equals the current t-period forward exchange rate.


Forward discount

Forward discount

Opposite of forward premium.


Loss Carry Back (Carry Forward)

Loss Carry Back (Carry Forward)

A tax provision that allows operating losses to be used as a tax shield to reduce taxable income in prior and future years. Losses can be carried backward for up to three years and forward for up to 15 years under current tax codes.


Forward trade

Forward trade

A transaction for which settlement will occur on a specified date in the future at a price agreed upon on the trade date.


Forward forward contract

Forward forward contract

In Eurocurrencies, a contract under which a deposit of fixed maturity is agreed to at a fixed price for future delivery.


Further Suggestions

Forward linkage
forward dealing
Forward market
Tax loss carryback, carryforward
Forward averaging
Forward discount
Forward differential
Long term forward contracts
Forward exchange
Forward foreign exchange contract
Forward market
Forward rate
Forward delivery
Forward exchange transaction
Forward cover
Forward interest rate
Nondeliverable Forward Contracts (NDF)
carry forward
Forward price
Carryforwards
Forward looking multiple
Forward integration
Foreign currency forward contract
forward pricing
Freight Forwarder


 
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