### Question
How does NORMAL TAXES AND SURTAXES define cash settlement option?


### Answer
Under *26 U.S.C. § 1234*, **cash settlement option** is defined as:

> any option which on exercise settles in (or could be settled in) cash or property other than the underlying property

#### Citation:
  - *26 U.S.C. § 1234*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter P-Capital Gains and Losses > PART IV-SPECIAL RULES FOR DETERMINING CAPITAL GAINS AND LOSSES**

