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Definition of Contract monthContract monthThe month in which futures contracts may be satisfied by making or accepting a delivery.
Related Terms:Bullet contractA guaranteed investment contract purchased with a single (one-shot) premium. Related: Cash settlement contractsFutures contracts, such as stock index futures, that settle for cash, not involving Conditional sales contractsSimilar to equipment trust certificates except that the lender is either the ContractA term of reference describing a unit of trading for a financial or commodity future. Also, the actual Floating-rate contractA guaranteed investment contract where the credit rating is tied to some variable Forward contractA cash market transaction in which delivery of the commodity is deferred until after the Forward forward contractIn Eurocurrencies, a contract under which a deposit of fixed maturity is agreed to Futures contractAgreement to buy or sell a set number of shares of a specific stock in a designated future Futures contract multipleA constant, set by an exchange, which when multiplied by the futures price gives Guaranteed insurance contractA contract promising a stated nominal interest rate over some specific time Guaranteed investment contract (GIC)A pure investment product in which a life company agrees, for a Hell-or-high-water contractA contract that obligates a purchaser of a project's output to make cash Monthly income preferred security (MIP)Preferred stock issued by a subsidiary located in a tax haven. Most distant futures contractWhen several futures contracts are considered, the contract settling last. Nearby futures contractWhen several futures contracts are considered, the contract with the closest Next futures contractThe contract settling immediately after the nearby futures contract. Nexus (of contracts)A set or collection of something. Open contractscontracts which have been bought or sold without the transaction having been completed by Optimal contractThe contract that balances the three types of agency costs (contracting, monitoring, and Options contractA contract that, in exchange for the option price, gives the option buyer the right, but not Options contract multipleA constant, set at $100, which when multiplied by the cash index value gives the Set of contracts perspectiveView of corporation as a set of contracting relationships, among individuals Spot monthThe nearest delivery month on a futures contract. Take-or-pay contractA contract that obligates the purchaser to take any product that is offered to it (and pay Turnkey construction contractA type of construction contract under which the construction firm is Window contractA guaranteed investment contract purchased with deposits over some future designated contract manufactureran external party that has been granted an outsourcing contract to produce a part or component for an entity contract vendoran external party that has been granted an cost-plus contracta contract in which the customer agrees forward contractAgreement to buy or sell an asset in the future at an agreed price. futures contractExchange-traded promise to buy or sell an asset in the future at a prespecified price. Futures ContractA contract in which the seller agrees to provide something to a buyer at a specified future date at an agreed price. Implicit ContractAn unwritten understanding between two groups, such as an understanding between an employer and employees that employees will receive a stable wage despite business cycle activity. Contract Work Hours and Safety Standards ActA federal Act requiring federal contractors to pay overtime for hours worked exceeding 40 per week. McNamara-O'Hara Service Contract Act of 1965A federal Act requiring federal contractors to pay those employees working on a federal contract at Walsh-Healey Public Contracts Act of 1936A federal Act that forces government contractors to comply with the government’s minimum wage and hour rules. Completed-Contract MethodA contract accounting method that recognizes contract revenue Contract AccountingMethod of accounting for sales or service agreements where completion ContractA formal written statement of the rights and obligations of each party to a transaction. Deferred futuresThe most distant months of a futures contract. A bond that sells at a discount and does not Expiration cycleAn expiration cycle relates to the dates on which options on a particular security expire. A Spread1) The gap between bid and ask prices of a stock or other security. Timing optionFor a Treasury Bond or note futures contract, the seller's choice of when in the delivery month to deliver. AnnuityA contract which provides an income for a specified period of time, such as a certain number of years or for life. An annuity is like a life insurance policy in reverse. The purchaser gives the life insurance company a lump sum of money and the life insurance company pays the purchaser a regular income, usually monthly. Non-Smoker DiscountIn October 1996 it was announced in the international news that scientists had finally located the link between cigarette smoking and lung cancer. In the early 1980's, some Canadian Life Insurance Companies had already started recognizing that non-smokers had a better life expectancy than smokers so commenced offering premium discounts for life insurance to new applicants who have been non-smokers for at least 12 months before applying for coverage. Today, most life insurance companies offer these discounts. Temporary Life InsuranceTemporary insurance coverage is available at time of application for a life insurance policy if certain conditions are met. Normally, temporary coverage relates to free coverage while the insurance company which is underwriting the risk, goes through the process of deciding whether or not they will grant a contract of coverage. The qualifications for temporary coverage vary from insurance company to insurance company but generally applicants will qualify if they are between the ages of 18 and 65, have no knowledge or suspicions of ill health, have not been absent from work for more than 7 days within the prior 6 months because of sickness or injury and total coverage applied for from all sources does not exceed $500,000. Normally a cheque covering a minimum of one months premium is required to complete the conditions for this kind of coverage. The insurance company applies this deposit towards the cost of a policy at its issue date, which may be several weeks in the future. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |