Chapter 04 · Section 4.1

Cash Settlement

Which of the following futures and option contracts must necessarily be cash settled?

a) Interest rate futures options.
• b) Interest rate options.
  No. Interest rate options can be cash-settled, but need not be because a bond is deliverable.
  c) Stock index options.
  d) Consumer price index futures.
  e) Stock options.
  f) c and d

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