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.
References in periodicals archive ?
The comments will be seen as a challenge to Nick Clegg, the Liberal Democrat leader and MP for Shef-field Hallam, who campaigned against tuition fee increases during the last election only to back fee rises introduced by the Coalition government.
The coffee shop will have to take a back fee ve k seat this week as Saints look to complete an unlikely run to the Super League title.
Additionally, the Fund will buy its shares at a per share amount equal to its net asset value (NAV) per share calculated at the close of business of the New York Stock Exchange on 9 December 2011, less a 2% buy back fee of the value of the shares bought, pursuant to the offer that will expire on 25 November 2011, unless extended.
If the court rules in favor of Slim on the tarifa cero issue, the competitors might not only have to pay connectivity fees to America Movil, but they might also be forced to reimburse Slim's company for back fees they received.
SIR - NHS continuing healthcare deadline I wish to draw your readers' attention to a recent Welsh Government announcement about claiming back fees paid for NHS continuing healthcare.
That is supposed to allow low-paid workers to claim back fees.
A provision giving standing to community and condominium associations to push along foreclosures when they are owed back fees and assessments also has helped the backlog.
who sponsored the legislation in the House said, "Rolling back fees and reducing taxes on airline passengers benefits everyone -- from helping families save money when traveling for the holidays to cutting costs for small businesses whose employees travel for work.
A further 35% felt worried about paying back fees, although only 17% felt pessimistic about their job opportunities once they complete their studies.
WalletHub stressed the need for more student checking accounts, which scale back fees to accommodate those consumers still in school.
The Labour run council recently decided to bring back fees, in some cases of PS600, blaming multi-million pound Government cuts.
The CBA is fiscally sound and it just makes sense to temporarily roll back fees as we are able.