Implied net amount to be borrowed...

archived_user

New member
Joined
Dec 7, 2011
Messages
0
Reaction score
0
…after the cost of the call(interest rate options). Having a little trouble understanding what this actually means. Any help would be appreciated.
Thanks
 
when you buy a call option you have to pay a premium up front. In return the seller makes a promise to pay you when the call option is in the money at expiration ( or earlier if you bought for an American option and choose to excercise)
“cost of the call option” is the premium.
 
Back
Top