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.

References in periodicals archive ?

In the real world hedging must often be accomplished by using futures contracts on different deliverable instruments. Such hedging may result in imperfect hedging as shown by Anderson and Danthine [1], Eaker and Grant [11], Dellas and Zilberfarb [9], Broll, Wahl and Zilcha [6].

In the real world hedging must often be accomplished by using futures contracts on different deliverable instruments. Such hedging is called indirect hedging and generally yields an imperfect hedge.