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Define: Cash Settled Options
Cash Settled Options are options that delivers only the cash profit when exercised and not the underlying asset.
Cash settled options are commonly written on indexes and commodities that cannot be physically delivered. As such, almost all index options are cash settled options. Due to the nature of delivering only the cash profit, there is no sense in early exercise for cash settled options at all, therefore, cash settled options tend to be European Style Options.
Read the full tutorial on Cash Settled Options.