Underlying asset: Difference between revisions
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* [[Volatility]] | * [[Volatility]] | ||
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Revision as of 16:49, 24 March 2020
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.
