A Cash-Settled Option Is Defined as an Option Which Does

question 15

Multiple Choice

A cash-settled option is defined as an option which does which one of the following?

• A) requires a cash deposit upon purchase
• B) has a foreign currency as its underlying asset
• C) has the U.S. dollar at its underlying asset
• D) entails a cash payment to the holder upon exercise
• E) offers the option to either deliver the underlying asset or a cash payment

---

Definitions:

Reproductive System

A system of sex organs within an organism which work together for the purpose of sexual reproduction.

Superficial

Located near the surface of the body or an organ, as opposed to deep or internal structures.

Proximal

Situated nearer to the center of the body or the point of attachment.