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LearningWHAT IS THE "UNDERLYING"?

FUNDAMENTAL CONCEPTSCALLS

Darren Krett

Friday, 10 February 2023

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WHAT IS THE "UNDERLYING"?

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Definition: The underlying is the instrument to be delivered in the event an option is exercised. An underlying can be a stock or shares of stock, an index, a futures contract, or a cash commodity. The amount of underlying for each option contract will depend upon the security traded and its specifications. For example, in stock options, each option represents 100 shares of the underlying stock. Long Underlying @ 100

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FUNDAMENTAL CONCEPTSCALLS

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