Define: Underlying

UK Accounting Glossary

Definition: Underlying


Quick Summary of Underlying


The asset, measure or obligation on which a derivative, such as an option or futures contract, is based.



What is the dictionary definition of Underlying?

Dictionary Definition


The asset, measure or obligation on which a derivative, such as an option or futures contract, is based.


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Full Definition of Underlying


In finance, the underlying of a derivative is an asset, basket of assets, index, or even another derivative, such that the cash flows of the (former) derivative depend on the value of this underlying.


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https://payrollheaven.com/define/underlying/
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Underlying. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. September 17, 2019 https://payrollheaven.com/define/underlying/.
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Underlying. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/underlying/ (accessed: September 17, 2019).
American Psychological Association (APA):
Underlying. PayrollHeaven.com. Retrieved September 17, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/underlying/

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This glossary post was last updated: 4th May 2019.