underlying asset
The specific security, financial instrument or commodity represented in a derivative. An Option Holder secures the Right to buy or sell the underlying assets when purchasing an option contract. Likewise a futures trader buys and sells contracts promising to take or make delivery of the underlying asset at a future date.
Browse by Subjects
Covered writer
option contract
collateralized bond obligation (CBO)
Asian tail
See All Related Terms »

storage capacity
Gross Profit/Loss
cash payments journal