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Delivery Option

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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.

Notes:
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.


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The contract is traded electronically and offers a cash settlement instead of a delivery option.
The new delivery option, called LotXpress becomes the third option in GE's Small Lot Solutions program.
The software delivery option enables IM to remotely install or update new programs on the desktop systems throughout the building.
 
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