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Underlying

Stock market  Uncovered put options  Underlying Instrument

Underlying
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.


Instrument
The instrument, such as shares and commodities on which a futures or options contract is based.
Related Terms...
Ordinary Shares
Commodity (commodities)
Futures Contract
Option
Derivatives ...

Underlying Interest
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.

Underlying Asset
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.
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Underlying debt
Definition:
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.

ASSET
The asset that gives value to a futures contract could be shares, share market indices, commodities, currency, interest rates, weather etc.
LOT SIZE ...

Underlying Behavior
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.
Uptick ...

Underlying Asset - The stock, commodity, futures contract, or cash index to be delivered in the event an option is exercised.

Security
The stock an option taker has the right to buy or sell if they choose to exercise their option.
Volatility
Measurement of an stock is expected to vary or fluctuate in a given time period ...

Underlying
1. In derivatives, the security that must be delivered when a derivative contract, such as a put or call option, is exercised.

Stock Dividends
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.

Underlying Instrument
A class of options is all the puts and calls on a particular underlying instrument. The something that an option gives a person the right to buy or sell is the underlying instrument.

asset, 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.

UNDERLYING SECURITY Options: the security subject to being purchased or sold upon exercise of an option contract. For example, IBM stock is the underlying security to IBM options.

Security
The security subject to being purchased or sold upon exercise of the option contract.

underlying security - the stock, bond, index, or other financial instrument upon which a derivative such as an option is based. It is the underlying security that is subject to being bought or sold upon exercise of the option.

Fund Expenses - You will also indirectly pay the fees and expenses imposed by the mutual funds that are the investment options for your variable annuity.

Underlying
The "something" that the parties agree to exchange in a derivative contract.
Undiversifiable risk ...

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.

Underlying Instrument
may sound musical, but refers to the stock, security, or other financial thing that is the basis of the value of a financial derivative.

Security - The security which one has the right to buy or sell via the terms of a listed option contract.

Underlying
Financial instrument that underlies an option, future, warrant or other instrument.
Underlying index
The index that a tracker follows ...

- The security on which options are being bought or sold.
Security - The security on which options are being bought or sold.

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.

contract
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.

Structure
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 price of MSFT at current date, 53.39$.
In table 2, there are the prices on Dec.


What supports the security or instrument that parties agree to exchange in a derivative contract.
asset
The security or property or loan agreement that an option gives the option holder the right to buy or to sell.

Underlying stock
The stock to be delivered in the event an option is exercised.
Underwriter ...


Derivatives are based on an , or asset, which may a bond, currency, index, raw material, interest, etc.
Underperformance
Describes an investment's return below that of the predefined comparative index.

See also: See also: Market, Trading, Stock, Option, Options

Stock market  Uncovered put options  Underlying Instrument

 
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