A. call premium
B. discount premium
C. strike premium
D. exercise premium
✅ The correct answer is option A.
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.
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.