The premium or option price on the second leg of a compound option, i.e., on the put option (with the first leg being a call option). If the buyer would exercise the call option in order to acquire the put option, another type of premium (i.e., the back fee) will be made to the seller against that right.
Derivatives
Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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