Equity Index Option Underlying

Definition

Equity Index Option Underlying. The inderlying of the equity index option, which is a reference index consisting of shares.

Issues and Challenges

Review session note 16 Dec 2009: Nature of the "Underlying" as a class here: Somebody takes a defined Pf of those at that time. Modeling response: this describes a different sort of equity option, one based on a locally defined basket of equities. This has not been modeled. An equity index as defined here and in the Indices and Indicators part of the model is a published figure, out out by an index publisher. The composition of the basiet underkying that index is a matter for the publisher and not for the Options Contract. It sounds as though a locally defined basket may be used as another kind of Underlying, and may be loosely referred to as an index option, however that's not the term modeled here.

Disclaimer

This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.