cash settlement investment & finance definition
An obligation or financial instrument, such as a futures or options contract, that is paid for in cash.
Cash Settlement
It is a settlement method used in some options and futures contracts whereby, upon the expiry or exercise, the seller do not have to deliver the actual underlying security but transfer the associated cash position.
Advertisement ...
Cash settlement contracts
Definition:
Futures contracts such as stock Index futures that settle for Cash and do not involve Delivery of the underlying. ...
Cash settlements occur as part of payments relating to futures contracts and also as part of the settlement process in a legal dispute.
Cash Settlement
A procedure for settling futures contract where the cash difference between the future and the market price is paid instead of physical delivery
Top Online Forex Brokers ...
Cash Settlement
The differences between equity and index options occur primarily in the underlying instrument and the method of settlement.
Cash settlement: Settlement of a contract by payment or receipt of a settlement amount instead of the physical delivery of the underlying asset.
Cash Settlement
A method of settling certain futures or option contracts whereby the seller (or short) pays the buyer (or long) the cash value of the commodity traded according to a procedure specified in the contract.
Cash Settlement : Payment for transactions done in one settlement on the due date.
Cash Settlement
Payment for transactions done in one settlement on the due date.
Change in Stock Price ...
Cash Settlement
The process by which the terms of an option contract are fulfilled through the payment or receipt in dollars of the amount by which the option is in-the-money as opposed to delivering or receiving the underlying stock.
Cash Settlement: In the stock exchange, there are certain deals like Gilts which are rendered for cash and not for account settlement. They are settled the next day of the deal.
Cash settlement - Final disposition of open positions on the last trading day of a contract month. Occurs in markets where there is no actual delivery.
CBOE - Chicago Board Options Exchange.
CBOT or CBT - Chicago Board of Trade.
Cash settlement
Cash compensation based on the results of measuring futures and options trades which cannot be physically fulfilled (e.g. index-based options).
Deutsch: Cash-Settlement ...
Cash Settlement
The cash payment made by the issuer to a warrant holder following the exercise of a warrant. The settlement amount is equal to the intrinsic value, calculated in the manner described in the Pricing Supplement.
Cash Settlement / Cash Delivered - Options which, when exercised, delivers the profit in cash instead of an underlying asset. Read All About Cash Settled Options.
Cash Settlement:
Transactions generally involving index-based futures contracts that are settled in cash based on the actual value of the index on the last trading day, ...
Cash Settlement
Settlement of an option contract not by delivery of the underlying shares, but by a cash payment of the difference between the strike or exercise price and the underlying settlement price.
Cash settlement contracts
Futures contracts, such as stock index futures, which settle for cash, not involving the delivery of the underlying.
Certificate of deposit (CD) ...
Cash settlement: A trade that is settled on the same day as the trade date.
Cash settlement
To settle a futures contract where the underlying asset is a financial instrument, such as a stock index or interest rate rather than a physical commodity, you deliver cash.
Cash settlement on the final settlement day. The final settlement price is $10 times a Special Opening quotation of the index.
Tick Size
Minimum price increment is one index point (equal to $10 per contract).
A swap whose cash settlement price is calculated based on the basis between a futures contract and the spot price of the underlying commodity or a closely related commodity on a specified date.
[MORE]
Exchange for Physicals (EFP) ...
A swap whose cash settlement price is calculated based on the basis between a futures contract and the spot price of the underlying commodity or a closely related commodity on a specified date.
[MORE] ...
Futures or Cash Settlement
Futures options are settled in either cash or a futures contract in the underlying security when they are exercised.
cash settlement A transaction settled with a cash payment in the amount of profit or loss rather... cash surrender value The amount available in cash upon cancellation of an insurance policy, generally...
Cash Settlement Typically associated with index options, this is the process through which option holders receive the intrinsic value of the options in cash at expiration. In this case, option sellers are responsible for cash payment.
Cash settlement amount The difference between the exercise price of the option being exercised and the exercise settlement value of the index on the day the index option is exercised.
Index options are cash settlement options. Indifference curve The graphical expression of a utility function, where the horizontal axis measures risk and the vertical axis measures expected return.
Delivery Day is cash settlement on the third Wednesday.
The minimum fluctuation (tick size) is half a basis point or 0.005%.
Cash - with an agreement to cash settlement, there is no physical delivery of the asset.
The Brent Index [1] is the cash settlement price for the ICE Brent Future is based on ICE Futures Brent index at expiry.
The final day that a futures contract may trade or be closed out before delivery of the underlying asset or cash settlement must occur.
Settlement of a warrant by the delivery or receipt of an actual underlying asset. This contrasts with cash settlement, where no delivery of an underlying physical asset takes place just a cash difference.
PIQP
Pre IMQP ...
CONTRACT - In futures markets, a standardized traded instrument that specifies the quantity and quality of a commodity (or financial asset) for delivery (or cash settlement) at a specified future date.
Stock Index Futures
A futures contract traded that uses a market index as the underlying instrument. Typically, the value of the contract is $500 times the underlying index. The delivery mechanism is usually cash settlement.
asset to the bank B for a payment of the par value (known as physical settlement), or the bank B pays the investor the difference between the par value and the market price of the debt obligation of the X company (known as cash settlement).
when the certificate is issued and the predefined cap, without the investor sharing in the above-the-cap price gain. If on expiry the underlying's price is below the starting price, the underlying is delivered. If it is higher, a cash settlement is ...
position (sold if one has bought; bought if one has sold). But strictly speaking, you can choose to carry the position all the way to the delivery date, when it's fulfilled either by the exchange of the physical commodity or by a cash settlement.
 See also: Cash, Settlement, Contract, Future, Futures
|
