Also known as: spot prices · cash price
Written by attorneys · grounded in primary & secondary sources — see below
The current market price of an asset at a given time. It serves as the baseline for determining forward prices in derivative contracts by incorporating carrying costs and distributions.
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Sydney Santos financed a used minivan through a nonprofit lender that repossessed and sold it without proper notice. The court applied the statutory minimum recovery formula to award Santos the credit service charge plus ten percent of the principal regardless of actual loss shown.
Stella Shapiro sold her mortgaged home to Skyline Construction for a stated price that credited the outstanding loan balance against the purchase amount. When Skyline later failed to pay the mortgage, Shapiro paid the debt and obtained subrogation rights against the property.
The spot price is the asset's current market price at the time of valuation. The forward price is derived from the spot price by adding carrying costs and subtracting distributions over the contract period.
The spot price determines whether a call option is in the money, at the money, or out of the money by comparison with the strike price on any given date during the option term.
Yes. When a partner enters post-dissolution forward contracts, projected losses are measured by comparing the fixed forward price against the higher spot prices the partnership must pay to acquire the goods.