Up-front fee which must be paid by buyer to seller is called
A. call premium
B. discount premium
C. strike premium
D. exercise premium
Answer: Option A
Solution(By Examveda Team)
Up-front fee which must be paid by buyer to seller is called call premium. Call premium is the dollar amount over the par value of a callable debt security that is given to holders when the security is redeemed early by the issuer. The call premium is also called the redemption premium.This Question Belongs to Management >> International Finance And Treasury
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