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
implied volatility
time value
covered put
out of the money
intrinsic value
See All Related Terms »

IPO halt
net current liabilities
fiduciary duty