Underlying asset: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Link with Underlying currency.) |
imported>Doug Williamson (Add link.) |
||
| Line 7: | Line 7: | ||
== See also == | == See also == | ||
* [[Binomial option pricing model]] | |||
* [[Delta hedging]] | * [[Delta hedging]] | ||
* [[Derivative instrument]] | * [[Derivative instrument]] | ||
Revision as of 13:43, 5 August 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.
