Form of settlement in which the issuer of the warrant pays a cash sum to the warrant holder instead of delivering the underlying instrument.
See Also
detinueStates Where You Can Go to Jail for DebtWarrant Coverage: Definition and ExamplesCan You Go to Jail for Debt?If the underlying instrument cannot be physically delivered to the warrant holder (e.g., in the case of index warrants), the contract is settled in cash. The difference between the strike price stipulated in the contract and the current market value of the underlying instrument is calculated and paid to the warrant holder.
See Also
Cum WarrantOur glossary explains important financial terms and should not leave any questions unanswered. However, if you are missing a definition, please write to us at redaktion@deutsche-boerse.com. We will then include the term if possible.
