# Extension fee (back fee)

- Canonical URL: https://www.gerhardmerk.de/extension-fee-back-fee-2
- Post ID: 594812
- Modified: 2023-07-25T20:59:55+00:00
- Language: en

## Definition

The amount payable when an option is extended beyond the original contract date and is extended through a subsequent contract (a premium paid when a buyer continues an option through a second option contract on extension date of the original contract). - Payment made by the owner of a compound option to the owner of the underlying option when the compound option is exercised (an option on a simple option that can be acquired at a later date for a fixed amount). Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

- Generator: Merk Knowledge 1.1.1