cash settlement

Definition of "cash settlement"
  1. An agreed-upon method where the seller pays the buyer the monetary value of a futures or option contract instead of delivering the actual commodity involved in the trade
How to use "cash settlement" in a sentence
  1. They decided to resolve their trade with a cash settlement.
  2. Instead of delivering the shares, the seller paid a cash settlement.
  3. A cash settlement was a convenient alternative to actual commodity delivery.

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