Cash settlement contracts

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Cash settlement contracts

Futures contracts such as stock index futures that settle for cash and do not involve delivery of the underlying.

Cash Settlement Contracts

Futures or option contracts in which the counterparties agree that instead of delivering the underlying assets at the execution of the contract, one delivers their cash equivalent. For example, suppose someone bought a call contract taking on the obligation to buy a certain number of barrels of oil, should the option be exercised. If/when the option is exercised, the call holder pays the strike price. In exchange, the counterparty delivers the cash value of the agreed upon number of barrels of oil. Such a transaction is usually netted between the parties so that cash only changes hands once.
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Diokno added that line agencies of the government are in position for the landmark shift from multiyear obligations-based to annual cash-based budgeting in fiscal year 2019.
The shift to an annual cash-based budget in 2019 from the multi-year obligations-based system at present would further reduce underspending, which has been on a decline in the past two years, said Budget Secretary Benjamin E.
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Case studies of five leading cash-based alternative online payment service providers in international markets are included in the report to illustrate current best practices under different market conditions.
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