Cash or share option
Cash or share option is a specialized form of warrant where the settlement is either cash or physical delivery of shares depending on whether the option expires in the money or out of the money.
Normally, the holder of the certificate receives the exercise price in cash when the option is in the money – that is, the price of the underlying at expiry is equal to or above the exercise price – and physical delivery of the underlying when the option is out of the money, that is, the price of the underlying at expiry is below the exercise price. The holder is the one giving the option.
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