• The asset against which an option is written. The underlier may be a stock, a bond, a futures contract, oil, land, whatever.

 Embedded terms in definition
Futures contract
 Referenced Terms
 Delta of an option: The rate of change of the value of an option with respect to the price of the Underlier, evaluated at the current market price of the underlier.

 Gamma of an option: The rate of change of the option's delta with respect to a change in the price of the Underlier. Gamma measures the sensitivity of a delta-hedged position in an option to changes in the price of the underlying asset.

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