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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MIAX will list and trade cash-settled options on SPIKES, a measure of the expected 30-day volatility in the SPDR S&P 500 ETF (SPY), the most actively-traded exchange traded fund in the world.
In addition, the Rights Plan does not restrict the ownership of cash-settled derivatives.
The Company has been advised that in connection with establishing their initial hedges of the convertible note hedge and warrant transactions, the option counterparties and/or their respective affiliates expect to enter into various cash-settled over-the-counter derivative transactions with respect to the Companys common stock and/or purchase shares of the Companys common stock in secondary market transactions concurrently with, or shortly after, the pricing of the notes.
The LME's cash-settled contract will be settled against an industry benchmark.
announced the placement of cash-settled exchangeable bonds due 2021 (the "Bonds") in aggregate principal amount of USD 205,000,000.
According to Espenilla, the BSP could use documentation to curb speculation in the foreign exchange market as most trades are through non-deliverable forward (NDF), cash-settled and usually short-term forward contract.
Both the Cboe and CME Group contracts are cash-settled in dollars, not Bitcoin.
The futures are cash-settled contracts based on the auction price of bitcoin in U.S.
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.
That included 758.4 million shares held by PCP3 and 25.1 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.