Cash Delivery
At the end of a board game, everyone has a good laugh and goes home. At the end of a futures or options contract, there’s a cash delivery (laughter contingent on whether things went as you speculated or not).
When all is said and done, the cash delivery is the way buyer and seller settle up with each other at the end of futures and options contracts.
Sometimes the underlying assets are delivered, but more often in our modern day-and-age, a cash settlement is the way to go. In the same way that gift cards make gifts easier, cash delivery makes futures and options contracts easier. Because...everyone likes cash.
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Finance: What is Cash on Delivery (COD)?41 Views
Finance a la shmoop what is cash-on-delivery?
or CoD well if you have a deadbeat buyer who's taken forever to pay you in [Danny Deadbeat laying on sofa]
the past think remember Popeye and wimpy borrowing money for burgers next Tuesday
when he actually never pays you'll eventually have to make that customer
that deadbeat a COD status purchaser well CoD has nothing to do with cheap
fish rather it stands for cash on delivery like you get cash when the good
is delivered and it means that the postal person or UPS gal or FedEx dude
has to collect the cash you are owed before they will actually leave the [Cash transfers to mail people]
package being shipped at the warehouse on your doorstep or van parked you know
down by the river if a client has such bad credit or has such a miserable
payment record that they have to be put on COD status well you may really have
to re-evaluate your relationship there COD also carries charges and often
they're big because a postal worker may have to ring the door eight times before [Postal worker ringing door bell]
finding the deadbeat at home and then even if he is home well it's uncertain
whether or not he'll have the ready cash to pay for whatever goods he just
ordered and sometimes you'd have better odds of getting money out of this thing [Pile of fish appear]