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What are forwards?
Forwards is a kind of atypical contract between two groups to purchase or sell an asset at a definite date or price. It involves various terns like short position, long position and delivery price. Other than these few terms, there are other terms like spot price and forward price present under this topic which need to be understood effectively. Thus, to understand it better, it is required by the students to opt for forwards homework help.
Advantages of a forwards contract
There are number advantages that a forwards contract has to offer. To understand this aspect it is essential that students opt for forwards homework help. Listed below are some of the advantages that it provides to a buyer or seller:
Example of a forwards contract
To understand forwards contract, you need to get through various examples or you could just opt for forwards assignment help which will make you understand the topic better. Let say, for example, an individual has to sell 500 bushels of corn within a year and is worried about its price being affected. So if he enters a forwards contract with someone the price gets fixed and obligates that individual to sell it at that price only. The price of those bushels will remain the same as per the contact, and will not change even if its price rises or falls.
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