Cost of Tender

Cost of Tender

The cost of delivery of the underlying asset of a futures contract on a commodity. For example, if one holds a long position (i.e., owns) a futures contract on corn, the seller must deliver the corn to the holder when the contract expires. The holder must compensate the seller for any transportation, carrying costs, and any other expenses that accrue in the process of delivering the corn. The costs are collectively called cost of tender.