underlier

Definition

A security or commodity which is subject to delivery upon exercise of an option contract or convertible security. Exceptions include index options and futures, which cannot be delivered and are therefore settled in cash.

Use underlier in a sentence

The underlier was scheduled to be delivered as part of the deal we had made with the trader we were working with.

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You should always try and shop around and make sure that you are getting a good rate on any underlier you may take on.

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When the two companies merged the smaller company failed to meet certain contractual requirements and was forced to deliver its underlier, the only convertible security the company had left.

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