The premium or option price on the first leg of a compound option, i.e., on the call option (with the first leg being a put option). Against this fee, the holder will get the right, without obligation, to exercise an option on an option (i.e., the compound option).
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 ...
Watch on Youtube
Comments