Posted by R. MAK. on December 10, 2009 ·
An underlier is known as a commodity or some form of security by which the backing is provided for the trading of shares. Sometimes the underlier is referred to as an underlying security. The underlier is that security that may be called for delivery if in case an option associated with the transaction is called or exercised. Generally, the underlier can also be such form of security that cannot be delivered, but will be settled with…
Posted by R. MAK. on August 8, 2009 ·
When the underlier of an option contract settles close to the option’s strike value at expiration then the Pin risk occurs. In such circumstances, the underlier is said to have pinned. The writer (seller) of the option cannot predict with 100% accuracy whether…
