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I am using the following line of code to format the data in my RadGrid column:
columns.Bound(p => p.Price).Format("${0:0.00}");
It works fine when the item has a price but throws a NullReferenceException when the price field is null.
If you have your model defined to accept null for the Price field, there is nothing in the RadGrid that should throw a NullReferenceException. Just to make sure I build a dummy grid that has a bound column that matches the code in your question. In my model, I set the value of the price field to null for one of the items. The result was just an empty cell for that item.