Underlying security

Underlying security

For options, the security that is subject to purchase or sold upon exercise of an option contract. For example, IBM stock is the underlying security for IBM options. For Depository receipts, the class, series, and number of the foreign shares represented by the depository receipt.

Underlying Security

In a derivative or warrant, a security that gives value to the derivative or warrant. For example, in an option giving one the right to buy stock in Johnson and Johnson, the underlying security is the stock in Johnson and Johnson. An underlying security may be a stock or a bond.
References in periodicals archive ?
Note: Call options represent the right, but not the obligation, to buy the underlying security at a predetermined price over a set period of time.
Rights to ownership or income are embedded in the security, and the token reflects the underlying security on a oneto-one basis.
Eversholt's financial profile is weak based on funds from operations (FFO) adjusted leverage, but we have also used a form of loan-to-value (LTV) ratio as a key credit metric for the rating given the secured debt structure and ability to value the underlying security (rolling stock) based on future cash flows.
It also provides us with easy onboarding of new participants, and all the underlying security, scalability, and resilience that are needed for a production solution like this.'
The integrity of an underlying security pledged to support such loans isn't guaranteed, and there are persistent concerns that the same assets have been used as collateral multiple times.
It removes a clause that enabled borrowers to delay foreclosure proceeding, reduces the time frame in which notices are sent out for immediate repayment of outstanding loans, and introduces e-auctions as well as the ability of an originator to split mortgages and their underlying security into parts and register them accordingly.
Bonner reduces his FY18 EPS view to $5.66 from $5.83 and lowers FY19 EPS target to $6.31 from $6.54, but adds that he continues to hold a favorable view of the company's underlying security software technology, with focus on "advanced threat protection and mobile services".
This is because in practice blockchain focuses on securing the external world and exchanges, but it does not look at the underlying security of the data.
Aside from some visual and underlying security changes,the latest build of the OS will bring battery improvements, and better background app management.
The price at which the underlying security can be bought or sold is referred to as the exercise price or strike price.
Seadrill (NYSE:SDRL) reported on Monday the settlement of a Total Return Swap agreement (TRS) expiring on 5 September 2016 via 4,000,000 common shares in underlying security.
Drilling contractor Seadrill Limited (NYSE:SDRL) Thursday announced the settlement of a Total Return Swap agreement (TRS) with 4,000,000 of its common shares in underlying security.