Buyers and sellers are randomly matched by the Exchange. The delivery payment is based on the contract's final settlement price. The month specified in a given futures contract for delivery of the actual physical spot or cash commodity. A notice presented through an exchange's clearinghouse by a clearing member announcing the intention to deliver the actual commodity in satisfaction of a contract obligation. The sensitivity of an option's value to a change in the price of the underlying futures contract, also referred to as an option's futures-equivalent position.
Deltas are positive for calls, and negative for puts.
A spread where the total delta position on the long side and the total delta on the short side add up to approximately zero. A document issued by a bank or warehouse indicating ownership of a commodity stored in a bank depository or warehouse. In the case of man commodities deliverable against futures contracts, transfer of ownership of an appropriate depository receipt may effect contract delivery. Derivative Financial instrument derived from a cash market commodity, futures contract, or other financial instrument. For example, futures contracts are derivatives of physical commodities, options on futures are derivatives of futures contracts.