Option Premium Payment Arrangement

Definition

Option Premium Payment Arrangement. Premium Type for Forward Start Equity Options.

Issues and Challenges

This was originally a selectable list called option premium type selection (option premium type in data models). Note against that element is given below, based on which this has been implemented as two sets of classes (both characterized as kinds of method). Earlier SME Review note:Further notes: REVIEW THIS - there appear to be two separate semantics in this list; are they mutually exclusive? Answers: You can pay the premium up front or in arrears (pre v pos tpaid) or you can pay it at any agreed time (indeed the time is already defined as terms see Payment Date), so this simply reflects that. Then there are other types of "Participating OptionS" where the anmount you pay depends on something else - so you don't pay the Premium up front. If it ends up outt of the money then you don't have to pay as much. So this is "Variable" premium. The alternative to this is "Fixed". If it's prepaid it's firxed If it's post paid it can bt variable or fixed. SO these are two facts. FpML: Premium Type for Forward Start Equity Option

Disclaimer

This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.