Underlying asset

The asset that an option gives the option holder the right to buy or to sell. The New York Times Financial Glossary

Financial and business terms. 2012.

Look at other dictionaries:

  • Underlying Asset — A term used in derivatives trading, such as with options. A derivative is a financial instrument whose price is based (derived) from a different asset. The underlying asset is the financial instrument (e.g., stock, futures, commodity, currency,… …   Investment dictionary

  • underlying asset — The security or property or loan agreement that an option gives the option holder the right to buy or to sell. Bloomberg Financial Dictionary The security, stock, commodity, index or future upon which an options or futures contract is based.… …   Financial and business terms

  • underlying asset — Fin an asset that is the subject of an option …   The ultimate business dictionary

  • Asset-backed security — In finance, an asset backed security is a type of debt security that is based on pools of assets, or collateralized by the cash flows from a specified pool of underlying assets. Assets are pooled to make otherwise minor and uneconomical… …   Wikipedia

  • Asset Base — The underlying assets giving value to a company, investment or loan. The asset base is not fixed, it will appreciate or depreciate according to market forces. Lenders use physical assets as a guarantee that at least a portion of money lent can be …   Investment dictionary

  • Asset-backed securities index — An asset backed securities index, or ABX, is a credit derivative instrument with asset backed securities as an underlying.On January 17, 2006, CDS Indexco and Markit launched ABX.HE, a synthetic asset backed credit derivative index, with plans to …   Wikipedia

  • underlying share price — (see underlying asset) London Stock Exchange Glossary …   Financial and business terms

  • underlying — or underlier An option or a future is a right or a commitment to buy or sell something at a future date. The underlying is the financial instrument that may or must be bought or sold in each option or futures contract. FAS 133, as amended by FAS… …   Financial and business terms

  • asset-backed securities — International asset backed securities, Also referred to as ABS. debt securities (debt security) (such as bonds or notes) which are issued in the course of a securitisation and backed, that is funded by and secured over, a portfolio of cash flow… …   Law dictionary

  • asset-backed security — International asset backed securities, Also referred to as ABS. debt securities (debt security) (such as bonds or notes) which are issued in the course of a securitisation and backed, that is funded by and secured over, a portfolio of cash flow… …   Law dictionary

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