Underlying Price

Underlying Price

The spot price of the underlying asset of a derivative. For example, suppose one owns a call option to buy so many shares of Marinelli Enterprises. If Marinelli Enterprises is currently trading at $15 per share, the underlying price is $15. The difference between the underlying price and the strike price greatly influences the value of a derivative.
References in periodicals archive ?
Meanwhile, core inflation which excludes certain volatile food and energy items to better capture underlying price pressures increased to 1.
consumer prices fell again in September, recording their biggest drop in eight months as gasoline costs fell, the government reported Thursday, but a steady increase in underlying price pressures should calm concerns that a disinflationary trend was re-emerging.
OptionScape enables traders to gauge immediately the risks to which they are exposed, not only under current market conditions, but also under a wide range of changing conditions for the life of the strategy related to the underlying price, volatility and time.
For many categories of tracked items, however, including 'meat, fish and animal products', 'grains and flours', 'milk and milk products' and 'sugar, sugar products and honey', price gains were still observed - signalling underlying price pressures.
IN THE last one year gold, represented by Gold Exchange Traded Funds ( which track the underlying price of gold), has been the worst performing asset class compared to its peers.
Chris Williamson, chief economist at Markit, said the figures "raise questions over whether the underlying price pressures are really picking up to the extent that the Bank of England is anticipating".
Aside from the Greek deal uncertainties, a drop in the underlying price of oil on over-supply worries, after a deal was finally struck with Iran to lift sanctions in return for curbing its nuclear programme, also kept markets subdued.
Average price increases have been proportionately less for larger car types, more typically reflecting underlying price inflation for new cars, rather than the introduction of more luxurious versions.
Rent inflation has slowed in recent months in line with QNB projections, tracking movements in the underlying price of land.
Another possible reason is related to monetary policy, which may have increasingly focused on underlying price developments rather than the transient factors affecting CPI inflation.
Last week's European Central Bank report shows underlying price pressures in the euro area are expected to remain subdued over the medium term.
1 per cent, further proof that underlying price pressures are benign.