The Farmer and the Baker The forward contracts always specify the minimum deliverable quality,and often a formula for delivering other qualities A market in forward contracts may be devised that encourages cash settlement,and discourages physical delivery THE COURSE OF FINANCE 2017 SPRING SJTU 11The Farmer and the Baker  The forward contracts always specify the minimum deliverable quality, and often a formula for delivering other qualities  A market in forward contracts may be devised that encourages cash settlement, and discourages physical delivery THE COURSE OF FINANCE 2017 SPRING SJTU 11