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Cheapest to Deliver - CTD
What does it mean?
The least expensive underlying product that can be delivered upon expiry to satisfy the requirements of a derivative contract.
In Other Words...
Certain derivative products provide contract holders the right to deliver different grades of underlying stocks, bonds, or commodities at specific delivery or expiry points. Because investors will always want to deliver the cheapest available underlying, the price of derivatives will always factor the CTD product.
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Related Terms
Commodity | Delivery Date | Derivative | Futures | Index Future | Underlying
1 |
A | B |
C | D |
E | F |
G | H |
I | J |
K | L |
M | N |
O | P |
Q | R |
S | T |
U | V |
W | X |
Y | Z
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