Business, Legal & Accounting Glossary
Sum payable by an index option contract writer to the option holder for each cash-settled option contract when it is exercised. It is computed as the product of the index multiplier and the difference between the option’s exercise price and the exercise settlement value of the index (which varies with the prices of the underlying securities) on the day the option exercise notice is given.
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This glossary post was last updated: 20th November, 2021 | 0 Views.