Options

Final Settlement Price

The specific, defined reference price used to determine an option's ITM/OTM status and settlement value at expiry — not simply the last traded price.

Final settlement price is a specifically defined reference price — methodology varies by exchange and instrument, often based on the underlying’s closing level or an average over a specific window — used to determine each option’s final ITM/OTM status and settlement value at expiry. It is not simply “whatever the last traded price happened to be.”

See how final settlement price determines expiry outcomes in Option Expiry Day Explained: What Happens When Options Expire.