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Forward Contract

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I have to answer the questions below in 250 words. I have been reading the chapter and don't fully understand these questions.

#1. What is a forward contract? How is a forward contract used to manage risk? Under what circumstances is this instrument most appropriately used?

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The solution explains various details relating to forward contracts

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#1. What is a forward contract? How is a forward contract used to manage risk? Under what circumstances is this instrument most appropriately used?

A forward contract is a contract between two parties wherein the seller agrees to deliver the specified asset in the contract to the buyer at the specified price on the specified date.
Forward contract is used to manage ...

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