StocksCum Rights Profit Margin Leveraged Buy Out Shares outstanding Net Change Convertible Bond
Cash Settlement
An option contract can be settled in two ways: delivery of the underlying shares or a cash payment based on the difference between the strike or exercise price and the underlying settlement price. This means that the holder of the option has the right to choose whether to receive the shares or the cash payment. This type of settlement provides flexibility and can be advantageous in certain market conditions. It is important for investors to understand the different settlement options when trading options.
Related terms
Understand the meaning and definition of Cum Rights in the context of stock market, trading, and investments.
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