Series 7 - General Securities Representative Exam

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Which of the following options contracts are cash settled?

SPY - SPDR S&P 500 ETF Options
A
SPX - S&P 500 Index Options
B
GLD - SPDR Gold Shares ETF Options
C
XLE - Energy Select SPDR ETF Options
D
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Explanations

Index options are cash settled. ETFs require the underlying shares of the ETF to be delivered upon exercise / assignment. Just know index options are cash settled for the exam

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