Cash settlement contracts

(redirected from Cash-Settled)

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.
Mentioned in ?
References in periodicals archive ?
BANKING AND CREDIT NEWS-March 13, 2018-Deutsche Bank AG offers cash-settled equity linked notes
M2 EQUITYBITES-March 13, 2018-Deutsche Bank AG offers cash-settled equity linked notes
Global Banking News-March 9, 2018--Deutsche Bank commences Cash-Settled Equity Linked Notes offering
Michelin purchased cash-settled call options to hedge its economic exposure to the potential exercise of the conversion rights embedded in the bonds.
The futures are cash-settled contracts based on the auction price of bitcoin in U.
Few key features of Deribit trading platform includes: trading plain vanilla European style cash-settled options on the Deribit BTC index with margin; trading BTC futures that settle on the Deribit BTC index, with up to 20x leverage; allowance for placing volatility orders, where the Deribit price engine continuously updates the price of the order as to keep the implied volatility of the order fixed.
The cash-settled IRFs provides market participants with a better option to hedge risks arising from fluctuations in interest rates, which depend on various factors including RBI policy, demand for liquidity and flow of overseas funds.
1 million cash-settled options on shares held by Yas Capital Limited, owned by Mansour.
Part 1 addresses corporate takeovers and the need to rethink corporate control of the market, with chapters on topics such as unwanted harmonization of corporate law, cash-settled derivatives as takeover instruments, and the reform of the EU Transparency Directive.
The 5 metric tonne (MT) cash-settled contract provides the optimal tool to hedge and mitigate price risk in physical copper and provides investors with access to one of the most liquid metal contracts in the world.
SIFC, cash-settled future contracts and improved debt instruments price and quantity information.
It cites a voting rights announcement which said Aabar holds cash-settled call options of 7.