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Cash settlement |
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Cash SettlementThe process by which the terms of an option contract are fulifilled 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 settlementDeals on an exchange where investors are obliged to settle immediately rather than on account.An expression used in futures and options trading which applies when physical delivery is impractical and contracts are settled by attaching a monetary value.Similar MatchesRegular way settlementRegular way settlementIn the money and bond markets, the standard basis on which some security trades are settled is that the delivery of the securities purchased is made against payment in Fed funds on the day following the transaction. Settlement rateSettlement rateThe rate suggested in Financial Accounting Standards Board (FASB) 87 for discounting the obligations of a pension plan. The rate at which the pension benefits could be effectively settled if the company sponsoring the pension plan wishes to terminate its pension obligation. Exercise settlement amountExercise settlement amountThe difference between the exercise price fo the option and the exercise settlement value of the index on the day an exercise notice is tendered, multiplied by the index multiplier. Insurance settlementInsurance settlementThe payment of proceeds by an insurance company to the insured to settle an insurance claim within the guidelines stipulated in the insurance policy. SettlementSettlementWhen payment is made for a trade. Further SuggestionsRegular settlementShort settlement Cash settlement contracts Dispute settlement mechanism Next day settlement rolling settlement Dispute settlement Good delivery and settlement procedures Immediate settlement Settlement risk Dispute Settlement Body Continuous net settlement (CNS) Uniform Settlement Statement Structured settlement Skip day settlement Same Day Funds Settlement (SDFS) settlement options Cash sale or settlement settlement day Real Estate Settlement Procedures Act (RESPA) Bank for International Settlements Settlement date Settlement options settlement Bank for International Settlements (BIS) |
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