Chapter 04 · Section 4.1
Cash Settlement
Which of the following futures and option contracts must necessarily be cash settled?
e) Stock options.
No. A stock is one of the easiest assets to deliver nowadays, so there is no need to cash-settle a stock option. Some option exchanges, however, reserve the right to cash-settle outstanding positions if necessary.
f) c and d
a) Interest rate futures options.
b) Interest rate options.
c) Stock index options.
d) Consumer price index futures.
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