An option that does not require actual delivery of the underlying security. The option is settled through a cash payment equal to the difference between the option strike price and the current value of the security. A cash-settled option is often used when delivery of the underlying security would be costly or difficult.
Related information about cash-settled option:
- Cash Settled Options by OptionTradingpedia.com
In fact, you can't really tell if an option is a cash settled option or a physically settled option just by looking at its options chains. As a rule of thumb, you should be ...
- Physically Settled Options by OptionTradingpedia.com
In fact, you can't really tell if an option is a cash settled option or a physically settled option just by looking at its options chains. As a rule of thumb, you should be ...
- What is cash-settled option? definition and meaning
Definition of cash-settled option: An option that does not require actual delivery of ... A cash-settled option is often used when delivery of the underlying security ...
- CBOE - Options Quick Facts - Beyond the Basics - Terminology
For example, a multiplier of 100 means that for each point by which a cash- settled option is in the money upon exercise, there is a $100 increase in the cash ...
- SuperDerivatives - Glossary - Asian
An Asian option is a cash-settled option whose payout is determined by the average value of the underlying asset on a predetermined set of dates (known as ...
- Understanding Index Options - The Options Clearing Corporation
a cash-settled option is the base for the determina- tion of the amount of cash ( exercise settlement amount), if any, that the option holder is entitled to ...
- Characteristics and Risks of Standardized Options - Twenty-First ...
A cash-settled option gives its owner the right to receive a cash payment based on the difference between a determined value of the underlying interest at the ...
- Trading OEX Options: The Risk Of Early Exercise
Jan 8, 2009 ... But, when assigned on a cash-settled option, the option position is canceled and there is no replacement. This assignment notice often occurs ...