back fee

Back fee

The fee paid on the extension date if the buyer wishes to continue the option.

Back Fee

In a compound option, the premium one pays on the second option contract. A compound option is an option on another option. For example, one may buy a call on a put, which is an option to buy an option to sell some underlying asset. An investor buying a compound option pays a premium on the first option, but does not pay a premium on the second option unless the first option is exercised. This second premium is the back fee.

back fee

Payment made by the owner of a compound option to the owner of the underlying option when the compound option is exercised. Compare front fee.

单词	back fee
释义	back fee Back fee The fee paid on the extension date if the buyer wishes to continue the option. Back Fee In a compound option, the premium one pays on the second option contract. A compound option is an option on another option. For example, one may buy a call on a put, which is an option to buy an option to sell some underlying asset. An investor buying a compound option pays a premium on the first option, but does not pay a premium on the second option unless the first option is exercised. This second premium is the back fee. back fee Payment made by the owner of a compound option to the owner of the underlying option when the compound option is exercised. Compare front fee.
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