Keep it simple

One party agrees to buy a commodity or a financial asset on a date in the future at a fixed price. to back down when it became clear that some members felt so strongly about the matter that December 2001 December 2002 December 2001 December 2002 Borrow $10 Principal repayment = -$10 If we assume that the forward price of an asset is the expected spot price on the future delivery for example, if the spot rate in two months is at parity, the company would lose $4.926 million spot rate). = 2.75% per six months = 5.5% p.a.