For example, a U.S. company might agree to buy ... weeks, months, etc.). The formula is as follows: Annualized Forward Premium = [(Forward Rate - Spot Rate) ÷ Spot Rate] × (360 ÷ n) × 100% ...

Real-World Examples of Elastic Goods Typically, goods that are elastic are either unnecessary goods or services or those for which competitors offer readily available substitute goods and services.