Underlying asset: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson m (Added 1 line space before see also) |
imported>Doug Williamson (Link with Underlying currency.) |
||
| Line 13: | Line 13: | ||
* [[Strike price]] | * [[Strike price]] | ||
* [[Underlying]] | * [[Underlying]] | ||
* [[Underlying currency]] | |||
* [[Volatility]] | * [[Volatility]] | ||
Revision as of 10:50, 8 March 2016
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.
