A forward contract (forward), particularly a structured forward on a metal commodity (e.g., gold), which fixes the corresponding spot rate (of the underlying commodity) and the floating rate components of the contango for the term of the contract. The forward rate will only be calculated at the end of the contract’s term (maturity date) based on the average of a relevant short-term lease rate for the underlying commodity over the course of the forward’s term (e.g., a 3-month rate for a 3-month forward).

The payoff or final outcome of the contract will be figured out, at maturity, in terms of the fixed spot rate and the floating rate components of the forward’s contango.