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Investment Terms: U




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This article is from the Investment Terms.

Investment Terms: U

  • Underlying Futures Contract:
    The specific futures contract that is bought or sold by exercising an option.

  • U.S. Treasury Bill:
    A short-term U.S. government debt instrument with an original maturity of one year or less. Bills are sold at a discount from par with the interest earned being the difference between the face value received at maturity and the price paid.

  • U.S. Treasury Bond:
    Government-debt security with a coupon and original maturity of more than 10 years. Interest is paid semiannually.

  • U.S. Treasury Note:
    Government-debt security with a coupon and original maturity of one to 10 years.

 

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