One month forward contract, entered on Jan 1st,2008 will expire on 31st Jan,2008 or on the last thursday?

Question

One month forward contract, entered on Jan 1st,2008 will expire on 31st Jan,2008 or on the last thursday?

Answer 1

last thursday of the month if you have entered the contact for january( same month)

Answer 2

Hi,

First, I would like to ask you: is it a forward contract or futures contract?

Futures contract is available in stocks and indices. These contracts are traded on stock exchanges. If you have entered into such contract, it will expire on last Thursday of the month (on NSE).

On the other hand, Forward contract is available on forex, interest rate, etc. They are contract between two parties - not traded on any exchanges. Such contract will expire on the date mentioned in the contract. Most probably it will expire on 31st Jan, 2008.