Up-front fee which must be paid by buyer to seller is called

A call premium
B discount premium
C strike premium
D exercise premium

Correct Answer: call premium

Up-front fee which must be paid by buyer to seller is called call premium. Call premium is the dollar amount over the par value of a callable debt security that is given to holders when the security is redeemed early by the issuer. The call premium is also called the redemption premium.
Bissoy MCQ
#Management #International Finance And Treasury

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