Underlying asset: Difference between revisions
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In relation to derivative instruments more generally, the underlying asset is the asset from which the cashflows, price and value of the derivative instrument are derived. | In relation to derivative instruments more generally, the underlying asset is the asset from which the cashflows, price and value of the derivative instrument are derived. | ||
Sometimes known as the Physical. | |||
Sometimes known as the ''Physical''. | |||
== See also == | == See also == | ||
* [[Binomial option pricing model]] | |||
* [[Delta hedging]] | * [[Delta hedging]] | ||
* [[Derivative instrument]] | * [[Derivative instrument]] | ||
| Line 12: | Line 15: | ||
* [[Strike price]] | * [[Strike price]] | ||
* [[Underlying]] | * [[Underlying]] | ||
* [[Underlying currency]] | |||
* [[Volatility]] | * [[Volatility]] | ||
[[Category:Corporate_finance]] | |||
[[Category:Financial_products_and_markets]] | |||
Latest revision as of 06:49, 21 July 2022
In relation to options, the underlying asset, or the underlying, is the asset which the option holder has the right to require the option writer deal in (at the strike price specified in the option).
In relation to derivative instruments more generally, the underlying asset is the asset from which the cashflows, price and value of the derivative instrument are derived.
Sometimes known as the Physical.
