Cash settlement

Equity Derivatives Anatomy™ Resources About the Equity Derivatives Definitions | (full wikitext) | (nutshell wikitext) Hot topics Synthetic Prime Brokerage Anatomy | The Triple Cocktail | Cancellation and Payment | Calculation Agent TOC | 1 General Definitions | 2 Option Transactions | 3 Exercise of Options | 4 Forward Transactions | 5 Equity Swap Transactions | 6 Valuation | 7 Settlement | 8 Cash Settlement | 9 Physical Settlement | 10 Dividends | 11 Adjustments and Modifications | 12 Extraordinary Events · 12.8 Cancellation Amount · 12.9 Additional Disruption Events · 12.9 List of ADEs · 12.9(b) Consequences of ADEs | 13 Miscellaneous Index: Click ᐅ to expand: ► Equity Derivatives ► Synthetic Prime Brokerage Comments? Questions? Suggestions? Requests? Insults? We’d love to 📧 hear from you. Sign up for our newsletter.

Settling one’s obligations under a derivative contract on termination by paying its cash value, rather than delivering the actual thing you have written the derivative on (which you won’t be surprised to hear is called “physical settlement”)

See also

• Cash Settlement under the Equity Derivatives definitions.
• Physical Settlement under the Equity Derivatives definitions.