Split-fee option

Split-fee option
An option on an option. The buyer generally executes the split fee with first an initial fee, ...

Split-fee option
Definition: [crh] An option on an option. The buyer generally executes the split fee with first an initial fee, ...

Front fee The fee initially paid by the buyer upon entering a split-fee option contract. Front office Refers to revenue generating sales personnel in a brokerage, insurance, or other financial services operation.

The fee initially paid by the buyer upon entering a split-fee option contract.
Homemade dividend
Sale of some shares of stock to get cash that would be similar to receiving a cash dividend.

A bond that begins as a zero-coupon bond paying no interest and converts to an interest paying bond on a future date.
Split-fee option ...

The value of a call on a put changes in inverse proportion to the stock price, i.e. it decreases as the stock price increases, and increases as the stock price decreases. Also known as a split-fee option.

See also: Values, Yield curve, Spot rate, Convertible Bond, Exercise price