What is Delivery Price?
How Does Delivery Price Work?
Upon the expiration of a futures contract, the underlying commodity is delivered to the holder in return for a predetermined price -- the delivery price. Delivery price is set by the clearinghouse at which the futures contract settles.
For example, if a soybean futures contract settles at a given clearinghouse, and the clearinghouse sets a price of $100 for the associated quantity of soybeans, $100 is the delivery price.
Why Does Delivery Price Matter?
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