While it focused on the valuation of a financial option, Black and Scholes (1973) also discuss using this methodology on real assets as the underlying instrument
The opening section depicted the eerie stillness of that little town of Bethlehem with the underlying instruments
creating the astonishing texture of bells ringing far in the distance.
Additionally, treasurers want to "look under the hood" of money-market mutual funds to see the underlying instruments
and understand what the funds are invested in.
Fee cuts, transparency, revealing the underlying instruments
without giving away the 'secret formula' to copycats, due diligence, redemptions and selling pressures, less restrictions on investors and getting in new money are all topics that might change the face of the industry as we know it today, which might find itself adopting a new model.
It covered underlying instruments
involved in the international financial markets, the processes for efficient settlements and related basic financial calculations.
By connecting companies and events in news stories quickly and accurately with the underlying instruments
, we can provide a direct link between news and other financial information.
Unlike many direct investors, portfolio investors often have relatively near-term horizons--that is, the future that concerns them is a relatively brief period of time--regardless of the maturity of the underlying instruments
Commission staff, she said, is assessing the adequacy of "investor disclosure, liquidity levels and transparency of underlying instruments
in which ETPs invest, fair valuations, efficiency in the arbitrage process and the relationship between market volatility and ETPs.
If the underlying instruments
are government bonds, your money is safe, but if these are, say, a bond issued by a real estate firm, then the guarantee is as good as the firm's credit.
Market risk would be assessed on a portfolio basis, taking into account the cash flows associated with both derivatives and the underlying instruments