index option
Definition
An option whose underlying security is an index. If exercised, settlement is made by cash payment, since physical delivery is not possible.
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Related terms:
Chicago Board Options Exchange, LEAPS, strike index, underlier, American Stock Exchange, AMEX, CBOE, Long-Term Equity Anticipation Securities
'index option' appears in the definitions of these other terms on BusinessDictionary.com:
double witching hour, index future, triple witching hour
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