Index Highlight Settlement For Free

Upon assignment of the exercise notice, the writer of the index option has the obligation to pay a cash amount. Settlement and the resulting transfer of cash generally occur on the next business day after exercise.

Most index options are cash settled which simply means that upon exercise cash is exchanged rather than securities. Most equity index options trade European style which means that the option can be exercised only on the date of expiration.

Most index options are cash settled which simply means that upon exercise cash is exchanged rather than securities. Most equity index options trade European style which means that the option can be exercised only on the date of expiration.

End-of-Month S&P 500 Index Options expire on the last business day of each month. End-of-Month S&P 500 Index Options are PM-settled; that is, their exercise settlement value is based on the closing level of the S&P 500 Index on the day the options expire.

Index options are cash settled when exercised, as opposed to options on single stocks where the underlying stock is transferred when exercised. Index options are classified as European-styled rather than American for their exercise.

Index options are always cash-settled and are typically European-style options, meaning they settle only on the date of maturity and have no provision for early exercise.

Upon assignment of the exercise notice, the writer of the index option has the obligation to pay a cash amount. Settlement and the resulting transfer of cash generally occur on the next business day after exercise.