Cash-Settled Option

Business, Legal & Accounting Glossary

Definition: Cash-Settled Option


Cash-Settled Option


Full Definition of Cash-Settled Option


An option that does not require actual delivery of the underlying security. The option is settled through a cash payment equal to the difference between the option strike price and the current value of the security. A cash-settled option is often used when delivery of the underlying security would be costly or difficult.


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https://payrollheaven.com/define/cash-settled-option/
Modern Language Association (MLA):
Cash-Settled Option. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
April 19, 2024 https://payrollheaven.com/define/cash-settled-option/.
Chicago Manual of Style (CMS):
Cash-Settled Option. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/cash-settled-option/ (accessed: April 19, 2024).
American Psychological Association (APA):
Cash-Settled Option. PayrollHeaven.com. Retrieved April 19, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/cash-settled-option/

Definition Sources


Definitions for Cash-Settled 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.