The Risk Limited Glossary
U:
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U - the Commodity Futures Symbol which represents the September Delivery Month.
Underlying - in an option contract, the security or commodity that is delivered when the contract is exercised.
Unit Investment Trust - an investment vehicle which is funded at the beginning and once investments are acquired acts like a liquidating investment. For example, commodity rights, corporate bonds, or mortgage backed securities would be acquired.
Universal Volatility Model - any of a class of option pricing models that model volatility skew by combining elements of local volatility, jump-diffusion and stochastic volatility models.
Up-and-Out - an options structure by which option contract dies or ceases to be active when an indicator, such as price, goes through an upside trigger point or threshold.
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