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Option premium: Difference between revisions
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{{a|isda|}}The price one pays, up front, to buy an option. This is the total cost to you of the option. There should be no circumstances after its payment in which you are obliged to pay anything more but, if the option expires out of the money, nor would you ever get the money back. Interesting implications under the flawed asset provision (Section 2(a)(iii)) of the | {{a|isda|}}The price one pays, up front, to buy an option. This is the total cost to you of the option. There should be no circumstances after its payment in which you are obliged to pay anything more but, if the option expires out of the money, nor would you ever get the money back. Interesting implications under the [[flawed asset]] provision (Section {{isdaprov|2(a)(iii)}}) of the {{isdama}}). | ||
{{sa}} | {{sa}} | ||
*{{eqderivprov|Premium}} under the {{eqdefs}} | *{{eqderivprov|Premium}} under the {{eqdefs}} | ||
*{{euaprov|Premium}} under the {{euadefs}} | *{{euaprov|Premium}} under the {{euadefs}} | ||