- Back Fee
A payment made to the writer of a compound option in the case that the call option is exercised in order to obtain a put option. Back fee is a premium charged at the second portion of the option, since a compound option is an option to purchase an option.
Compound options are most commonly used by mortgage originators as a way to mitigate risk. The back fee is offered at a premium, because it provides an investor with the ability to wait before executing an option.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Back fee — The fee paid on the extension date if the buyer wishes to continue the option. The New York Times Financial Glossary … Financial and business terms
back fee — The fee paid on the extension date if the buyer wishes to continue the option. Bloomberg Financial Dictionary … Financial and business terms
fee tail — see fee 1 Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. fee tail n. A conveyance of prop … Law dictionary
fee simple conditional — see fee simple Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. fee simple conditional … Law dictionary
Back to the Future Part II — Theatrical release poster Directed by Robert Zemeckis Produced by … Wikipedia
Fee — For other uses see Fee (disambiguation) A fee is the price one pays as remuneration for services. Fees usually allow for overhead, wages, costs, and markup. Traditionally, professionals in Great Britain received a fee in contradistinction to a… … Wikipedia
Fee tail — Entail redirects here. For other uses, see Entail (disambiguation). Property law … Wikipedia
Back-End Load — A fee (sales charge or load) that investors pay when selling mutual fund shares within a specified number of years, usually five to 10 years. The fee amounts to a percentage of the value of the share being sold. The fee percentage is highest in… … Investment dictionary
Back Against the Wall — Infobox Album Name = Back Against The Wall Type = tribute Artist = Billy Sherwood Released = 2005 Recorded = Genre = Progressive rock Length = Label = Producer = Reviews = Last album = This album = Next album = Back Against The Wall is an album… … Wikipedia
Fee — Recorded in many forms including O Fee, O Fay, Fee, Fay, and Foy as well as diminutives such as Fagan, Fegan, Feehan, and Feighan, this interesting surname is of Irish origin. The origin is said to be from the pre 10th century Gaelic O Faich,… … Surnames reference