Amount paid for initiating a compound or split-fee option contract. While all option contracts require a fee (the option premium) to be paid up-front to the seller, only compound or split-fee options require another amount (the back fee) for exercising them.
Related information about front fee:
- Front Fee Definition | Investopedia
The option premium paid by an investor upon the initial purchase of a compound option. A compound option is one where the underlying asset is also an option ...
- Front Fee - Financial Dictionary - The Free Dictionary
The fee initially paid by the buyer upon entering a split-fee option contract. Front Fee. In a compound option, the premium one pays on the first option contract.
- What is front fee? definition and meaning - InvestorWords.com
Definition of front fee: Amount paid for initiating a compound or split-fee option contract. While all option contracts require a fee (the option premium) to be paid ...
- Front Fee: Definition from Answers.com
Front Fee The premium charged upon the initial purchase of a compound option. Investopedia Says : In other words, the front fee is what it costs to acquire.
- What Is a Front Fee?
A front fee is a charge that is assessed on at the beginning of the purchase of some type of compound option. This up-front premium is only the first charge to be ...
- Up-front fee for loan aid is a red flag
May 5, 2012 ... Up-front fee for loan aid is a red flag, Even as Arizona's housing market begins to recover from its years-long slump, people desperate for a ...
- What is front fee? definition and meaning - BusinessDictionary.com
Definition of front fee: The payment required to initiate a purchase agreement.
- Don't Pay an Up Front Fee for a Loan! - BBB News Center
Feb 3, 2004 ... The Better Business Bureau (BBB) is stepping up its efforts to educate consumers on how to make smart money decisions and avoid scams in ...