Dictionary of Business Terms: underlying futures contract
underlying futures contract
futures contract that underlies an option on that future. For example, the Chicago Board of Trade offers a U.S. Treasury bond futures option. The underlying future is the Treasury bond futures contract traded on the Board of Trade.
Dictionary of Finance and Investment Terms: underlying futures contract
underlying futures contract
futures contract that underlies an option on that future. For example, the Chicago Board of Trade offers a U.S. Treasury bond futures option. The underlying future is the Treasury bond futures contract traded on the Board of Trade. If the option contract were exercised, delivery would be made in the underlying futures contract.
