Hi
I am unable to understand the difference between Actual Forward Price (AFP) and Fair forward price (FFP)??
Can anyone clearly explain the difference between the two?
Also how do we gain/lose on the same?
Regards
3 Replies
Vikram Bhatia
(CA Final)
(122 Points)
Replied 19 August 2013
Dear Rohan,
Actual forward price refers to the price which actually exist on a given future date which we comes to know only at that date whereas fair forward price is that price which we determines today on tbe basis of current price & market conditions affecting such price which may or may not be equals to the actual forward price..
The difference brtween the two can be termed as the gain or loss..
Hope it will clear your doubt upto some extent...!!
Ritzz
(CA Final - Article )
(365 Points)
Replied 19 August 2013
yes vikram..the doubts have been cleared..thank u for ur time 
Regards
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