OptionAutomator Options Trading Glossary:

Definition, Examples & Resources:Cash Settlement / Cash Delivered'

« Back to the Options Trading Glossary

What is Cash Settlement / Cash Delivered in Options Trading ?

Cash Settlement / Cash Delivered
When the right of an option was exercised by the investor, proceeds are delivered in a cash settlement rather than the underlying asset. The investor does not take physical possession of an underlying in this case, but conveniently receives a cash transfer equivalent to the strike price of the option.




Share
>
Thanks for sharing. Connect with us on social media for additional content!

Send this to a friend

Hi, this may be interesting you: Cash Settlement / Cash Delivered! This is the link: https://www.optionautomator.com/Options-Trading-Glossary/cash-settlement-cash-delivered/