Template:M summ EUA Annex Premium: Difference between revisions
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[[Premium - Emissions Annex Provision|A]] workaday definition that captures the [[option premium]] you pay to buy an option. | [[Premium - Emissions Annex Provision|A]] workaday definition that captures the [[option premium]] you pay to buy an option. | ||
{{options and flawed assets}} |
Latest revision as of 09:42, 17 April 2023
A workaday definition that captures the option premium you pay to buy an option.
Once paid, you have no further obligations under the Transaction, just the right — confitional on the option being in the money — to be paid on exercise. This can make matters interesting should your swap dealer decide um alberne kerle zu spielen with the flawed asset provisions in your ISDA — though, newsflash: it won’t, as long as its risk team retains possession of their deliberative faculties — but that won’t stop the negotiation community obsessing about how to cater for the contingency that they do not.
For bookish types, there is a lengthy disquisition about it in the premium section of our article on Section 2(a)(iii).