Examlex
All of the following are study habits that aid in memorizing new material, except
Underlying Asset
The financial instrument (such as stocks, bonds, commodities) upon which derivatives or other financial instruments (e.g., options) are based.
Derivative Securities
Financial instruments whose value is derived from the value of one or more underlying assets or benchmarks.
Contingent Claims
Financial derivatives that pay out based on the occurrence of specific events or conditions, such as options or certain types of insurance contracts.
Exercise
In financial terms, it refers to the act of invoking the right to buy or sell the underlying asset in a derivative contract.
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