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Deliverable Instrument

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Deliverable instrument
The asset in a forward contract that will be delivered in the future at an agreed-upon price.

Deliverable Instrument
The underlying asset in a forward contract. A deliverable instrument is a commodity or security that is given to the buyer of a forward contract at the expiration date in exchange for a certain price. See also: Delivery.


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In the real world hedging must often be accomplished by using futures contracts on different deliverable instruments.
 
 
 
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