UK Accounting Glossary
A cash settlement is a payment in cash for the value of a stock or commodity underlying an options or futures contract upon exercise or expiration.
A cash settlement is a settlement method used in certain futures and options contracts where, upon expiration or exercise, the seller of the financial instrument does not deliver the actual (physical) underlying asset but instead transfers the associated cash position.
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This glossary post was last updated: 2nd February 2020.