That is 'A basic asset' | Information 2019 - What is it?


  Basic asset - the term used in trade in derivatives. Options - a derivative example. A derivative - a financial instrument with the price which is based on various asset. A basic asset - a financial instrument on which the derivative price is based. 

2019 - Basic asset

Basic asset, Information - 2019

Similar questions:



Destruction of 'a basic asset' | Information 2019 - What is it?


  Basic assets give to derivatives the cost. For example, the choice on a stock of XYZ grants to the holder the right to buy or sell XYZ at the strike price up to the expiration. The basic asset for a choice - reserved XYZ.

  The basic asset can be used to define point within the agreement which provides cost to the contract. The basic asset maintains the safety involved in the agreement which parties concerned agree to exchange as part of the derivative contract.

Example of a basic asset

  In the cases including share options, a basic asset a stock. For example, with a share option to acquire 100 shares of the company of X at the price of 100, a basic asset - shares of the company of X. The basic asset is used to determine choice value before the expiration. The value of a basic asset can change before the expiration of the contract, having mentioned choice value. The value of a basic asset tells to dealers at any moment, whether it is worth carrying out a choice  or not.

  The basic asset could also be currency or an index of the market, such as S/P 500. In case of stock indexes the basic asset consists of ordinary actions within an index of stock market.

Understanding of derivative contracts

  The price of a choice or the future contract is received from the price of a basic asset. In the option contract the writer has to or buy or sell a basic asset to the buyer in the specified date in coordinated the price. The buyer isn't obliged to buy a basic asset, but they can carry out the right if they make the decision to make so. If the choice is going to expire, and the basic asset didn't move rather favorably to make implementation of a choice standing, the buyer is able to afford an istekaniya, and they will lose the sum which they paid for a choice.

  Futures - the obligation to the buyer and the seller. The seller of the future agrees to provide a basic asset at the expiration, and the buyer of the contract agrees to buy the basic at the expiration. The price they receive and pay, respectively, a price in which they were included into the future contract. Most of dealers in futures closes the provisions before the expiration as retail dealers and hedge funds have not enough requirement to take physical possession of oil barrels, for example. But, they can buy or sell the contract at one price and if it moves favorably, they can leave trade and get profit that way. Futures - a derivative because the price of the oil future contract is based on dynamics of the prices of oil, for example.


Tue, 28 May 2019 22:38 GMTCramer: The US economy 'could be on the verge of a significant slowdown'Tue, 28 May 2019 22:25 GMTMondelez isn't feeling the heat from global consumer worries, CEO saysTue, 28 May 2019 19:31 GMTTobacco stocks tumble as cigarette sales declineTue, 28 May 2019 19:07 GMTDressbarn, CVS, Pier 1 and Topshop shuttering stores, pushing planned closures to 7,150Tue, 28 May 2019 18:54 GMTThe World Health Organization recognizes workplace 'burnout' as occupational phenomenonTue, 28 May 2019 17:26 GMTStocks making the biggest moves midday: Fiat Chrysler, AMD, Beyond Meat & moreTue, 28 May 2019 17:26 GMTAMD jumps about 10% after analysts say chipmaker is poised to take market share from IntelTue, 28 May 2019 16:44 GMTRoku's 200% surge this year has made the stock too expensive, analyst saysTue, 28 May 2019 16:30 GMTWalmart poaches ex-Google, Amazon exec Suresh Kumar for new CTO roleTue, 28 May 2019 15:21 GMTProsecutors say J&J ran 'deceitful, multibillion-dollar brainwashing campaign' in key opioid trialTue, 28 May 2019 15:00 GMTBrazil sues Big Tobacco over health costs from smokingTue, 28 May 2019 13:04 GMTBeyond Meat's shares jump 8% after European production deal is signedTue, 28 May 2019 12:39 GMTImpossible Whopper boosted Burger King traffic by 18%, report saysTue, 28 May 2019 11:41 GMTUS court rules partially in favor of Molson in its fight over a Bud Light adTue, 28 May 2019 11:18 GMTCiti slashes Apple outlook, saying trade war will likely cut China sales in halfTue, 28 May 2019 11:02 GMTJared Kushner, Google's Schmidt and Microsoft's Nadella to attend secret Bilderberg MeetingTue, 28 May 2019 11:00 GMTTesla's China-made Model 3 reportedly may be priced in the $43,400 to $50,700 rangeTue, 28 May 2019 10:36 GMTOklahoma and Johnson & Johnson face off in the first opioid crisis trialTue, 28 May 2019 07:14 GMTTrump concludes Tokyo visit as Japanese trade official plays down August deal chancesTue, 28 May 2019 07:02 GMTFrance insists any Renault-Fiat deal must protect French jobsTue, 28 May 2019 06:45 GMTDow drops more than 200 points as rates slide, stoking fears about the economyMon, 27 May 2019 14:01 GMTThe measles infected nearly every child in the US — until a vaccine was introducedMon, 27 May 2019 05:40 GMTFiat Chrysler and Renault propose merger to form world's third largest automakerMon, 27 May 2019 02:12 GMTTrump says he expects trade gap with Japan to be 'straightened out rapidly'Sun, 26 May 2019 15:30 GMTFormer Amazon executive uses Bezos' mock press release trick at his smart home companySun, 26 May 2019 15:00 GMTReview: The Lexus LX 570 is a serious off-road SUV that gives the Range Rover a run for the moneySun, 26 May 2019 15:00 GMTThese cars aren't coming back in 2020. Here are the ones we'll miss — or notSat, 25 May 2019 21:06 GMTStan Lee's former manager arrested for allegedly stealing $262,000 from late comic book legendSat, 25 May 2019 16:22 GMTMicrosoft, once considered a boring software maker, has outperformed tech unicorns since 2015Sat, 25 May 2019 14:30 GMTKurt Cobain's pizza plate sold for $22,400. Here's more celebrity garbage that sold for big money.

Warning About Refusal! The information on our website may be out-of-date and not official. For more information, please visit the Bank's official website.
For credit, insurance and account opening issues, please contact the Bank's consultant by phone. Thank you for using our site.


If we don 't have accurate information or it is out-of-date, please notify us by E-mail.





Leave your comment or question: