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What Is the Typical Exercise Style for Options on Stock Indices?

Options on major stock indices, such as the S&P 500 (SPX) or the NASDAQ 100 (NDX), are typically European-style options. This means they can only be exercised on the expiration date.

Furthermore, these options are often cash-settled, meaning no physical delivery of the underlying asset occurs; the difference in value is paid in cash.

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