2 Underlying Asset Definition

Derivatives are contracts, which convey the right/obligation to buy or sell a specified asset at a specified price at a specified future date. An underlying asset (or also called Commodity) of the derivative contract is the one that is to be bought or sold on a future date. Existing currencies within Oracle Banking Treasury Management can be identified as underlying assets. For example, U S Dollar (USD), which is recognized as a currency in Oracle Banking Treasury Management, would be the underlying asset for a US Dollar option. Similarly, Equities, Bonds and Zero Coupon bonds can also be defined as underlying assets.

This topic details the procedures for defining Commodities (or Underlying Assets) in Oracle Banking Treasury Management.

This topic contains the following sub-topics: