I was wondering if anybody knew how settlement works? From the specifications on the CBOE, it seems like it's cash settled.
Is that true?
So for example, if I sell a VIX put and the holder exercises the option, I don't end up buying a basket of assets that I have to sell later? I just pay the other party the cash difference?
Thanks.
Is that true?
So for example, if I sell a VIX put and the holder exercises the option, I don't end up buying a basket of assets that I have to sell later? I just pay the other party the cash difference?
Thanks.