index
An index is a database used to standardize the trading prices of a commodity and act as the "underlying asset" for the creation of a derivative.
index
An index is a database used to standardize the trading prices of a commodity and act as the "underlying asset" for the creation of a derivative.
Additional Information
For example, the Guy Carpenter Catastrophe Index (GCCI) is used by the Bermuda Commodities Exchange (BME) as the underlying basis (or asset) for setting a value upon its catastrophe options.
