Filter by Categories
Accounting
Banking

Derivatives




Short Call Premium


The call option premium that is received by a call seller (writer). It represents the compensation a call seller receives against conferring on a call buyer the right to exercise on some underlying asset or variable. In other words, it refers to the call premium from the call seller’s perspective. For example, the right to exercise on a certain call option may cost $5. The seller will receive this amount as a short call premium from the buyer (who pays it as a long call premium).



ABC
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
Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments


    Leave Your Comment

    Your email address will not be published.*