A forward market contract to buy Japanese yen three months in the future at a price of *105/$ will:

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A forward market contract is a contract between two parties to buy or sell an asset at a specified price and date in the future. In this case, the contract is to buy Japanese yen three months in the future at a fixed exchange rate. This insulates the buyer from changes in exchange rates, as they have locked in a price for the yen. It does not protect against changes in interest rates or lock in a profit based on current exchange rates. The contract may be settled in the physical delivery of yen, but it could also be settled in cash.

A Forward Market Contract to Buy Japanese Yen Three Months