Sum payable by an index option contract writer to the option holder for each cash-settled option contract when it is exercised. It is computed as the product of the index multiplier and the difference between the option's exercise price and the exercise settlement value of the index (which varies with the prices of the underlying securities) on the day the option exercise notice is given.
Related information about exercise settlement amount:
- What is exercise settlement amount? definition and meaning
Definition of exercise settlement amount: Sum payable by an index option contract writer to the option holder for each cash-settled option contract when it is ...
- Exercise Settlement Amount financial definition of Exercise ...
The difference between the exercise price of the option and the exercise settlement value of the index on the day an exercise notice is tendered, multiplied by ...
- Index Options: Settlement Explained | The Options & Futures Guide
Exercise Settlement Amount = (Difference between Index Value and the Strike Price) x Contract Multiplier. As can be seen from the above formula, the main ...
- Options Glossary: E
Exercise settlement amount. The difference between the exercise price of the option being exercised and the exercise settlement value of the index on the day ...
- Index Options - Ise.com
The exercise settlement value is an index value used to calculate how much money will change hands, the exercise settlement amount, when a given index ...
- (VIX ® ) Options - CBOE - Product Specifications
The exercise-settlement amount is equal to the difference between the exercise- settlement value and the exercise price of the option, multiplied by $100.
- SPX - S&P 500 ® Index Options - CBOE - Product Specifications
The exercise-settlement amount is equal to the difference between the exercise- settlement value and the exercise price of the option, multiplied by $100.
- OCC Rules - The Options Clearing Corporation
(5) The term "exercise settlement amount" as used in respect of stock options shall mean the amount payable to the Delivering Clearing Member upon delivery ...