Underlying Price

The price of the underlying instrument is also easy to identify. The last price of an underlying instrument is normally thought a good indication of its price. However, some traders use the relationship of bid and ask prices to the last price to determine the underlying instrument’s price. For example, suppose you are looking at an instrument with a last price of 3204. The bid is 3204, and the ask is 3208. The individual who values the instrument on the last price will use the price of 3204. The individual who values the instrument on the relationship between the last price and the bid and ask prices will use a price of 3206 or 3208. With Aspen Graphics, you can not only use bids, asks, or bid ask mid-points, but a variety of other prices as well.