Cheapest to Deliver - CTD
What Does Cheapest to Deliver - CTD Mean?
The least expensive underlying product that can be delivered upon expiry to satisfy the requirements of a derivative contract.
Investopedia explains Cheapest to Deliver - CTD
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.