What does underlying mean in writing?

What does underlying mean in writing?

The obvious meaning of underlying refers to something beneath something else. But the word carries a more subtle meaning, that of something hidden but important, something that shapes the meaning or effect of something else, without being explicit itself.

What do you call a hidden meaning?

Allegory. 1. a poem, play, picture, etc, in which the apparent meaning of the characters and events is used to symbolize a deeper moral or spiritual meaning 2. the technique or genre that this represents 3. use of such symbolism to illustrate truth or a moral 4.

What is the underlying of an option?

An underlying option security is a stock, index, bond, currency, or commodity on which an option’s value is based. It is the primary component of how the option gets its value. They derive their value from the performance or price action of an underlying security.

What is meant by underlying security?

An underlying security is a stock or bond on which derivative instruments, such as futures, ETFs, and options, are based. It is the primary component of how the derivative gets its value. For example, a call option on Alphabet, Inc.

What is the underlying price of an option?

Underlying Price The spot price of the underlying asset of a derivative. For example, suppose one owns a call option to buy so many shares of Marinelli Enterprises. If Marinelli Enterprises is currently trading at $15 per share, the underlying price is $15.

Do you need money to exercise an option?

In other words, there really is no need to exercise the option, receive the shares and quickly sell them. A better reason to exercise a call would be to obtain the shares as a longer term investment, but if you do not have the money to pay for the shares, that is not an option.

What happens if you sell short calls and they become deep in the money?

So, if a call option is deep in the money, it means that the strike price is at least $10 less than the underlying asset, or $10 higher for a put option. Deep in the money options have a very high delta level, meaning that the options will move nearly in lock-step with the underlying asset.