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. Investopedia Says:
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. Related Terms:
Approved Delivery Facility
Basis Grade
Certificated Stock
Delivery Instrument
Delivery Notice |