How is the forward value date calculated on a 90-day forward contract?

How is the forward value date calculated on a 90-day forward contract?

What will be an ideal response?

ANSWER

Answer: To find the delivery date for a 90-day forward contract, one first finds the spot value date, which is typically two business days in the future relative to the day that the contract is made. Then, to find the forward value date, one goes to the calendar date in three months corresponding to the calendar date of the spot value date. If that calendar date in three months is a legitimate business day in both countries, that date is the forward value date.