The court granted the supplier summary judgment with respect to the debtor's payments under these forward contracts
because the payments are protected by the safe harbor defense and cannot be avoided as preferences.
If a large multinational company has one or more treasury centers that perform bank-like functions for the parent company's affiliates, it seems difficult to draw the line between a foreign currency forward contract
between two "private" parties and a bank foreign currency forward contract
It is important to also recognize that, over the time period that the forward contract
remains outstanding, an adjustment to the weighted average number of shares assumed to be outstanding in calculating diluted earnings per share must include the effects of settlement of the forward contract
in shares (if it is dilutive).
If the forward contract
and the stock were a straddle, however, any loss realized on cash-settling the forward contract
would be deferred to the extent of unrecognized gain in the offsetting stock position.
The second component represents the initial premium or discount on the forward contract
A privately negotiated contract to buy or sell a commodity for an agreed-on price on a certain future date.
But if the yen weakened initially and rose to 128, we would have purchased, at 127, a forward contract
or an option to hedge the yen receivable.
a calendar-year taxpayer, enters into a forward contract
with ABC Bank to sell five million pounds on March 31, 1992, at $1.
The costs of this hedging technique are the transaction cost of buying a forward contract
and the cost of currency conversion.
Given the current market pricing for the underlying equity securities, the company retains a substantial value over the prepaid forward contract
The De Beers Group of Companies announced today that it will begin providing customers of its rough diamond auctions with an opportunity to determine the volume of goods they wish to purchase, over a given period, through the introduction of forward contract
Enters into a futures or forward contract
to deliver the same or substantially identical property;
So quote your business in yen, and buy a forward contract
if you're completely risk averse.
The advantage of the forward contract
is that it locks in the dollar amount needed to pay for the imports, regardless of how the pound's value changes over time.
1259(b)(3) defines a "position" as an interest, including a futures or forward contract
, short sale or option.