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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Service hotel services settled in cash and barterowo; hotel category cat.4 Part 2.
Generally, the VPF may be physically settled (with either the pledged shares or different shares of the subject stock) or, at the taxpayer's option, settled in cash.
Where the vesting period of a salary deferral arrangement is longer than three years, CRA's interpretative position is that any instrument that (1) is "in the money" (has a value on the grant date, regardless whether the value can decline or be forfeited before realization) and (2) can be settled in cash at the employer's option is fully taxable to the employee on the date of grant, even where the employer does not deduct the payment until it is made.
Moreover, most such plans can be settled in cash or stock.
FAS 123(R) also provides rules for share-based payments that are issuer liabilities, such as share appreciation rights settled in cash. Such liabilities are accounted for based on fair value.
However, unlike equity instruments, where fair value is determined only once, the fair value of liability instruments is measured each reporting period until the instruments are settled in cash, and compensation is recognized based on the periodic change in value, through the settlement date.
Stock-appreciation right settled in cash. The only difference here is you settle the stock-appreciation right in cash.