Delivery Option

Delivery Option
A feature added to some futures contracts permitting the short position to determine the combination of timing, location, quantity, and quality of the underlying commodity stated in the delivery notice.

A delivery option provides a great deal of flexibility for the deliverer of the underlying commodity, but it poses a risk for the investors expecting delivery of the underlying.


Investment dictionary. . 2012.

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  • delivery receipt — ➔ receipt1 * * * delivery receipt UK US noun [C] ► US COMMUNICATIONS a document that proves that a person has received a letter or parcel → Compare DELIVERY CONFIRMATION(Cf. ↑delivery confirmation) …   Financial and business terms

  • Option (aircraft purchasing) — This article is about options in aircraft purchasing. For other types of options, see Option. Aircraft assembly at Boeing An option, when purchasing aircraft, allows an airline to purchase additional aircraft in the future at an agreed price and… …   Wikipedia

  • option — an agreement, often for a consideration, which permits the purchase or sale of something within a stipulated time, in accordance with the terms of the agreement. For example, a right by a tenant to take up a further lease of premises, usually… …   Financial and business terms

  • Option — Gives the buyer the right, but not the obligation, to buy or sell an asset at a set price on or before a given date. Investors, not companies, issue options. Investors who purchase call options bet the stock will be worth more than the price set… …   Financial and business terms

  • Delivery options — The options available to the seller of an interest rate futures contract, including the quality option, the timing option, and the wild card option. Delivery options make the buyer uncertain of which Treasury Bond will be delivered or when it… …   Financial and business terms

  • delivery options — The options available to the seller of an interest rate futures contract, including the quality option, the timing option, and the wild card option. delivery options mean that the buyer is uncertain of which Treasury bond will be delivered or… …   Financial and business terms

  • Delivery — The action by which an underlying commodity, security, cash value, or delivery instrument covering a contract is tendered and received by the contract holder. Delivery can occur in option, forward, or futures contracts. In most instances, the… …   Investment dictionary

  • Option forward purchase —   The purchase of a foreign currency for delivery between two future specified dates at a specified price …   International financial encyclopaedia

  • Option forward sale —   The sale of a foreign currency for delivery between two future specified dates at a specified price …   International financial encyclopaedia

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