Underlying asset (See Chapter 29 of the Vernimmen) Each option represents an asset that can either be bought or sold. This asset is called the underlying asset. The underlying asset can be either a financial asset (e.g. a stock, a bond, a Treasury bond, a forward contract, currency, a stock index, etc.) or a commodity (for example a raw material or mining asset). Underlying asset is in general the asset of any derivative contract. Underlying asset (See Chapter 29 of the Vernimmen) Each option represents an asset that can either be bought or sold. This asset is called the underlying asset. The underlying asset can be either a financial asset (e.g. a stock, a bond, a Treasury bond, a forward contract, currency, a stock index, etc.) or a commodity (for example a raw material or mining asset). Underlying asset is in general the asset of any derivative contract. See all terms in the dictionary of finance To know more about it, look at what we have already written on this subject :

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Definitions of terms begining with the same letter as "Underlying asset" :

US GAAP US-style option Underlying asset Underwriting

Underwriting fee Underwritten deal Undiversifiable risk Unit credit method

Unlevered beta Unlevered cost of equity Unsolicited offer Upward flex