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Sum Certain

Also found in: Legal

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Sum Certain

A legal description of the predetermined settlement price for a contract or negotiable instrument.

Notes:

This term refers to the stated final payment to be made at the end of a contract. A digital option is an example of a financial product with a sum-certain payment. After a set price is met, the payout is fixed instead of depending on or relating to the underlying security and strike price.

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