Cash settlement
With cash , even English cash settlement called paying is money instead of real assets or securities understood.
There is a cash settlement, for example, for warrants . Instead of the delivery or submission of the securities on which the warrant is based, there is only a settlement between the security price determined on the financial market and the exercise price (strike) determined in the warrant . The subscription ratio specified in the warrant must be observed.
In the case of goods that are not traded on the financial market, the determination of a "rate" that is accepted by all parties turns out to be an objectively unsolvable valuation problem , which is why a cash settlement is not possible at all or only through subsequent negotiations.