Cash-Based Option

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Definition: Cash-Based Option

Cash-Based Option
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Full Definition of Cash-Based Option

A type of securities derivative, which only settles in cash. The holder is not required to purchase the underlying asset; if the price of the underlying asset exceeds the strike price of the option, the holder is paid the difference at settlement.

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https://payrollheaven.com/define/cash-based-option/
Modern Language Association (MLA):
Cash-Based Option. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
April 23, 2024 https://payrollheaven.com/define/cash-based-option/.
Chicago Manual of Style (CMS):
Cash-Based Option. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/cash-based-option/ (accessed: April 23, 2024).
American Psychological Association (APA):
Cash-Based Option. PayrollHeaven.com. Retrieved April 23, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/cash-based-option/

Definition Sources

Definitions for Cash-Based Option are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.