Time-Option Forward Contracts
You may also reserve a time-option forward contract. This contract allows greater flexibility in paying. For example, a property developer may give you a date of February 2011 as an approximate completion date but may tell you it could take a bit longer. Your dealer may recommend that you set a date for your forward contract of May 2007 and you are free to settle that contract anytime before the maturity date with no penalty.
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