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

Forward exchange transaction

Forward exchange transaction

Foreign currency purchase or sale at the current exchange rate but with payment or delivery of the foreign currency at a future date.


Forward cover

Forward cover

The purchase in the cash market of the difference between what you are obligated to deliver in a forward contract and the amount of the asset you own. For example, if you agreed to sell 100,000 bushels of corn in September in a forward contract, but you only have 60,000, you need to purchase 40,000 to cover your obligation.


Net operating loss carryforwards

Net operating loss carryforwards

Application of losses to offset earnings in future years.


Carryforwards

Carryforwards

Tax losses allowed to be applied to offset future income in some specified number of future years.


Forward sale

Forward sale

A method for hedging price risk that involves an agreement between a lender and an investor to sell particular kinds of loans at a specified price and future time.


Further Suggestions

Forward discount
forward pricing
Forward foreign exchange contract
Forward rate
carry forward
Forward market
Forward market
Expectations theory of forward exchange rates
Forward linkage
Forward rate agreement (FRA)
Forward trade
Forward pricing
Forward Fed funds
Forward integration
Roll forward
Forward foreign exchange rate
forward dealing
Forward discount
Forward parity
Loss Carry Back (Carry Forward)
Forward price
Range forward
Forward exchange rate
Forward
Forward exchange


 
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