Forward contract

An agreement to exchange an underlying at a fixed delivery price on a specified maturity, without the futures convention of repeated settlement. Its fair delivery quote is ${\mathbb{E}}_Q[D_{tT}{S}_T\mid {\mathcal{F}}_t]/{\mathbb{E}}_Q[D_{tT}\mid {\mathcal{F}}_t]$. It may differ from a futures contract quote when rates are stochastic.