By Chuck Kowalski
Definition: Underlying refers to the commodity or futures contract upon which a given option is based. The price movement of the underlying dictates the price of a option contract.
The instrument, such as shares and commodities on which a futures or options contract is based.
The specific security, commodity, index or financial instrument that an option or futures contract is traded.
News On Underlying Interest ...
In finance, an is an investment from which a derivative security is derived. s are invariably more common and more widely heard of than the securities derived from them.
What is the definition of Underlying Asset?
The underlying asset is the item being traded and exchanged between dealers and traders on a financial exchange.
It is a financial instrument which must be delivered in completion of an option or futures contract.
Municipal bonds issued by government entities but under the control of larger government entities and for which the larger entity shares the credit responsibility. ...
- covered warrant
The asset on which the covered warrant is based and derives its value. The may be a security (such as shares), a share index (e.g. FTSE 100), a commodity or a currency.
Underlying Commodity: The cash commodity underlying a futures contract. Also, the commodity or futures contract on which a commodity option is based, and which must be accepted or delivered if the option is exercised.
Stock - The stock is the stock for which you are purchasing the option.
Underlying Asset - In order to write an options trading contract, you certainly have to include the commodities that contract is buying. Corn futures, gold and silver are all examples of commodities that can be underlying assets.
The asset that gives value to a futures contract could be shares, share market indices, commodities, currency, interest rates, weather etc.
LOT SIZE ...
The presence of a Key Reversal Bar usually signals a reversal of psychology and a subsequent retracement of recent gains.
The actual traded market or markets from which the price of futures is derived.
Underlying Asset - The stock, commodity, futures contract, or cash index to be delivered in the event an option is exercised.
The stock an option taker has the right to buy or sell if they choose to exercise their option.
Measurement of an stock is expected to vary or fluctuate in a given time period ...
1. In derivatives, the security that must be delivered when a derivative contract, such as a put or call option, is exercised.
Dividends increase the attractiveness of holding stock rather than buying calls. This is because call buyers are not entitled to the dividends until they actually own the stock.
In this pattern prices edge steadily higher in a converging pattern i.e. there are higher highs and higher lows indicating that bulls are winning over bears.
A class of options is all the puts and calls on a particular instrument. The something that an option gives a person the right to buy or sell is the instrument.
Underlying asset, underlying instrument: The instrument (shares, bonds, stock index.) that can be purchased (in case of call) or sold (in case of a put) by a buyer who exercises his option.
SECURITY Options: the security subject to being purchased or sold upon exercise of an option contract. For example, IBM stock is the security to IBM options.
The security subject to being purchased or sold upon exercise of the option contract.
security - the stock, bond, index, or other financial instrument upon which a derivative such as an option is based. It is the security that is subject to being bought or sold upon exercise of the option.
Underlying Fund Expenses - You will also indirectly pay the fees and expenses imposed by the mutual funds that are the underlying investment options for your variable annuity.
The "something" that the parties agree to exchange in a derivative contract.
Undiversifiable risk ...
Underlying Security: The security upon which a derivative (option, index, futures contract) or other security is based. Eg, an ASA option is based upon the price of ASA stock. The S&P 500 futures index is based upon the S&P 500 stock index.
may sound musical, but refers to the stock, security, or other financial thing that is the basis of the value of a financial derivative.
Underlying Security - The security which one has the right to buy or sell via the terms of a listed option contract.
Financial instrument that underlies an option, future, warrant or other instrument.
The index that a tracker follows ...
Underlying Commodity: The commodity or futures contract on which a commodity option is based, and which must be accepted or delivered if the option is exercised. Also, the cash commodity underlying a futures contract.
liquidity: The liquidity in the basket of the ETF. This liquidity is not always visible on the stock exchange, but market makers can facilitate large investments into ETFs if there is sufficient liquidity.
Underlying Instrument: A trading instrument subject to purchase upon exercise.
Undervalued: Refers to a security selling below the value the market value analysts believe it is worth, or below its liquidation value.
You must consider the characteristics of the contract. The chart below shows the average daily volume of the e-mini S&P: ...
Other Underlying Assets
In addition to credit risk and currency, the value of OTC derivatives can be based on assets like commodities, bonds and shares of stocks.
First, the parent company establishes a wholly-owned special purpose subsidiary (a grantor trust), whose sole purpose is to issue the securities. The holding company then acquires all of the special purpose trust's common stock.
Underlying: Close point of DJX at current date, 84.48.
In table 1, there are the prices on Dec.
What supports the security or instrument that parties agree to exchange in a derivative contract.
The security or property or loan agreement that an option gives the option holder the right to buy or to sell.
The stock to be delivered in the event an option is exercised.
Derivatives are based on an , or asset, which may a bond, currency, index, raw material, interest, etc.
Describes an investment's return below that of the predefined comparative index.
See also: Market, Trading, Stock, Option, Options