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Quantitative Finance · Begrippenlijst

Wat is Cash settlement and physical delivery?

Ook bekend als: cash settlement · physical delivery

Definition 21.9 Markets I: The Ecosystem and Exchange-Traded Markets · Hoofdstuk 21 — Basis, Roll and Delivery

At expiry a cash-settled future pays a last variation margin against a final settlement price and disappears. A physically delivered future obliges the short to deliver, and the long to receive and pay for, the underlying, under the exchange’s delivery rules: grade, location, dates, and, for bond futures, a choice among deliverable issues.

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