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Wild Card
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Provisions in several futures contracts whereby the investor who is short the contract can deliver any of a number of securities or commodities in settlement of the delivery obligation, can choose the instruments to be delivered at the last moment, and/or can deliver anytime within a prescribed period. The option to change the item delivered or the time of delivery enhances the flexibility of the short's position and occasionally exacerbates price volatility in the underlying near expiration.
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