Ask the Institute Archive
DATE: October 14, 2013
Can you explain how settlement values are calculated for A.M.-settled indexes?
ANSWER:The exercise-settlement value of an A.M.-settled option is determined using a special calculation for the underlying index. Specifically, the opening sales price in the primary market for each component security in the index is used to calculate the settlement value for that index. To learn more about how settlement values are calculated for A.M.-settled indexes, view this segment of "Ask the Institute."