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What Is the Settlement Method for Options on the S&P 500 Index?

Exclusively cash-settled, as the S&P 500 index is a non-deliverable theoretical basket of stocks.
Greeks.Live24.11.25

What Is the Settlement Method for Options on the S&P 500 Index?

Options on the S&P 500 index (SPX) are exclusively cash-settled. Since the index is a non-deliverable theoretical basket of stocks, physical delivery is impossible.

The settlement is based on the difference between the final settlement value of the index and the option's strike price.

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